Greater Philadelphia leads the nation with the largest increases in investor-bought homes.
- Out of 40 metros analyzed by Redfin Corp, investors purchased 19% of the homes sold in Greater Philadelphia from January to March this year. The median sale price for homes bought by investors in the metro area was $125,000.
- Within the region, the Strawberry Mansion neighborhood had the largest share of investors buying homes at almost 59%. The University City neighborhood saw half of all home sales go to investors. Upper Chester was next with 47%. Montgomery County, which Redfin classifies as its own metro area, saw the fourth-largest quarter-over-quarter increase in investor purchases, at 10%.
- Cobbs Creek and Kingsessing neighborhoods in Southwest Philadelphia had the highest number of homes go to investors at 131. The 19134 ZIP code, covering areas of Port Richmond and Kensington, had 93 homes sold to investors, while Strawberry Mansion had 73.
- Nationally, investors bought 20% of all homes sold. The total number of investor-purchased homes dropped nationally by 11.5% quarter-over-quarter in the first three months of 2022, while Philadelphia’s investor activity soared by 55% – almost triple the next closest metro — Newark, New Jersey with a 21% increase.
- Investors are taking advantage of a strong, competitive rental market, Demand is up and will continue to increase; rents are expected to grow faster than home prices in 2022 with overall rents in the Philadelphia area rising by nearly 8% from one year ago. The rental market is robust based on some of these factors – some homeowners will be forced to sell due to the expiration of the mortgage forbearance program and consequently need to rent; housing prices are still out of reach for many buyers; potential home sellers are renting while they try to find new homes in a tight market.