It’s mostly sunny in Philadelphia 2018 when it comes to the housing market…
- Philadelphia’s GDP grew 2% since 2010 (near bottom of the nation’s 10 largest metropolitan areas). As Lauren Gilchrist from JLL’s Philadelphia office says, “This slow but steady growth makes it particularly attractive to investors, thus presenting less risk to investors than a more dynamic market.”
- As a result, the multi-family market is where most of the action has been. Gilchrist reported that 2500 new units came on line this year with another 2700 set for next year and 3500 more planned. Gilchrist predicted, “most of these proposed units will never get out of the ground because the supply is outpacing absorption.” With single –family homes though, it’s a seller’s market with supply not keeping up with demand.
- From 2000-2016, Center City population rose by 27% and the areas to the north and south rose by 17%. These new residents are better educated and wealthier than the region as a whole – 86% of Center City residents have a bachelor’s degree or higher and the average household income is an impressive $113,000. One reason for this phenomenon is between 2005 and 2016 there was a 41% hike in millennials moving to Philadelphia (the biggest influx of any of the 10 largest cities) with the largest spike in population between 2008 and 2009.
- And, interestingly, those living in Philly want to stay in Philly. In 2017, 87% of Philadelphia based homebuyers looked for homes in Philly. And, millennials are not moving to the suburbs. They are committed to the city’s walkability, affordability, restaurant scene and the abundance of parks and green spaces.