Philadelphia Housing Market: Trends & Prices
Philadelphia Real Estate Market Overview
(Last Updated – 6/2023)
There’s a lot to love about the City of Brotherly Love. For starters, U.S. News & World Report ranks Philadelphia as the 119th best place to live in America, the 19th best place in America to retire, and the eighth best place to live in all of Pennsylvania.
When it comes to actually living in Philadelphia, the cost of living is 4.5% higher than the national average, according to the Council for Community and Economic Research’s 2022 Cost of Living Index, but is far less than nearby metro areas like Washington, D.C., and New York City. The median Philadelphia home sale price is also significantly lower, at $250,000, as of April 2023. The national average price for the same month was more than double that, at $507,300, according to the National Association of REALTORS®.
Recommended: Cost of Living in Pennsylvania (2023)
Residents need to bundle up during the chilly winters, but they can take advantage of all of Philadelphia’s outdoor spaces in the other seasons. Of course, this city is best known for Philly cheesesteaks, but there is also a smorgasbord of food trucks, restaurants, and beer gardens for locals to satisfy their cravings. Read more about home ownership.
Keep reading to learn more about the Philadelphia real estate market, popular neighborhoods, and housing prices.
Overall Philadelphia Market Trends
The real estate pros at Redfin find the Philadelphia housing market to be somewhat competitive, with many homes selling in around 46 days.
Some homes receive multiple offers. On average homes sell for 3% below list price.
$250,000
Median Sale Price
$200
Avg. Price Per Sq. Foot
48 days
Avg. Time on Market
Philadelphia Housing Market Forecast
Philadelphia’s housing market is one to follow, with strong signs of buyer competition in its future.
According to Zillow, Philadelphia median home prices rose by only 0.6% over the past year. Despite a modest spring market, real estate experts expect it to pick back up as we enter the second half of 2023, with prices rising and homes not staying on the market as long.
So who’s scooping up homes in Philadelphia? Generation Z, for one, has been fueling part of the demand. Philadelphia has reportedly been among the top five cities for Gen Z homebuyers 25 and younger in recent years, and Gen Z home seekers are expected to continue to play a strong role in Philadelphia’s housing market.
CommercialCafe, a real-estate listing service, named Philadelphia the 13th-friendliest city for Gen Z in a 2022 report. Fast internet, bars and sports venues, commute options, and parks all played important factors.
Demographics of the Philadelphia Market
This vibrant city is packed with interesting neighborhoods and is bordered by charming towns.
Before exploring the most popular neighborhoods of Philadelphia, stepping back and getting a bigger picture may prove worthwhile. While each neighborhood has its own demographics, it can be helpful to look at Philadelphia as a whole.
Median Income: $52,649
Median Age: 34.8
College Educated: 32.5%
Homeowners: 52.4%
Married: 34.6%
Popular Philadelphia Neighborhoods
Philadelphia is known as being a “city of neighborhoods,” and there are tons of distinct areas to explore, from the bustling downtown to a veritable museum row.
Home seekers may want to check out popular neighborhoods in Philadelphia. Here are demographics, characteristics, and housing prices in five.
University City
University City lies in the heart of West Philadelphia and is named for being an academic epicenter of the region. Two distinguished campuses, the University of Pennsylvania and Drexel University, are here.
Alongside great education opportunities are nationally renowned medical hubs that serve multiple disciplines. Museums, galleries, festivals, and performance spaces can also be found in this dynamic neighborhood.
Quick Facts
Population:
52,160
Median Age:
23
Housing Units:
22,155
Bike Score:
92/100
Walk Score:
90/100
Transit Score:
95/100
Average Household Income:
$49,820
University City Housing Market
Home values in University City increased 0.5% over the past year, according to Zillow.
Average Sale Price
$537,000
Rittenhouse Square
Rittenhouse Square is considered to be an oasis in the midst of a bustling city. This pretty neighborhood attracts some of Philadelphia’s chicest residents, as well as students and young professionals.
From shopping to dining to quiet walks on tree-lined streets, Rittenhouse Square can give residents a taste of whatever it is they’re looking for.
Quick Facts
Population:
13,432
Median Age:
33.3
Housing Units:
9,435
Bike Score:
91/100
Walk Score:
99/100
Transit Score:
100/100
Average Household Income:
$140,822
Rittenhouse Square Housing Market
Buyers can have a little wiggle room when home shopping in the Rittenhouse Square neighborhood.
It’s rare for a home to receive multiple offers. Homes typically sell for about 3% below list price and go pending in around 62 days.
Median Sale Price
$483,000
Average Price Per Sq. Foot
$455
Bella Vista
Nice view indeed.
This area was settled by Italian immigrants, and today visitors and locals alike flock to the famous 9th Street Italian Market, which is the oldest operational open-air market like it in America.
Today residents come from near and far, and diversity is celebrated.
Quick Facts
Population:
39,335
Median Age:
36.1
Housing Units:
20,794
Bike Score:
83/100
Walk Score:
97/100
Transit Score:
78/100
Average Household Income:
$139,868
Bella Vista Housing Market
In this somewhat competitive market, some homes receive multiple offers. Homes can sell for about 2% below list price.
Buyers have discovered Bella Vista over the past year. The average home stays on the market for 50 days, compared with 62 days a year before.
Median Sale Price
$590,000
Average Price Per Sq. Foot
$404
Old City
History buffs will love Old City, as this is the place where the Declaration of Independence was signed.
This neighborhood is known for embracing its historic past and looking to the future. Lying next to the Delaware River, Old City can offer residents everything they’re seeking, from culture to art to more historic spots than they’ll know what to do with.
While many are drawn to Old City, next to the Delaware River, for its reputation as the nation’s most “historic square mile,” modern nightlife and hip restaurants are also plentiful.
Quick Facts
Population:
7,021
Median Age:
36
Housing Units:
4,331
Bike Score:
83/100
Walk Score:
98/100
Transit Score:
98/100
Average Household Income:
$158,458
Old City Housing Market
The real estate market in the Old City neighborhood is not very competitive; it takes around 100 days for homes to sell in this area.
Homes do not typically receive multiple offers and sell for around 3% under list price.
Median Sale Price
$313,000
Average Price Per Square Ft.
$354
Washington Square West
Modernity meets historic charm in Washington Square West, where cobblestone streets are nestled around luxe high-rise condos.
For those who like to do a little shopping on the weekends, this area specializes in jewelry, antiques, and artwork. Or you can spend time at the beloved Washington Square Park in the northeast corner of the neighborhood.
Quick Facts
Population:
7,216
Median Age:
34
Housing Units:
4,125
Bike Score:
89/100
Walk Score:
99/100
Transit Score:
100/100
Average Household Income:
$102,200
Washington Square West Housing Market
The more popular homes in Washington Square West can sell in as little as 25 days, but on average homes in this neighborhood sell after 51 days on the market.
Some homes receive multiple offers, and the average home sells for around 3% below list price.
Median Sale Price
$475,000
Average Price Per Sq. Foot
$316
SoFi Home Loans
The Philadelphia real estate market is somewhat competitive. This is a big city with charming old neighborhoods, wonderful universities, lots of culture, and a vast menu.
If you think Philadelphia could be your home sweet home, then you may need to consider your mortgage financing options.
If you’re buying a home or refinancing an existing mortgage, SoFi can help you make the process as quick and painless as possible.
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