To Rent Or To Buy In A Prospering Philadelphia
If you have been on the fence about making the switch from renter to homeowner, some new research makes the argument for buying stronger than ever. A year end report from the rental-search website Abodo ranks Philadelphia as second for biggest rise in rental prices over the course of 2016 with a 4.2% leap. Yet, the city still comes in far behind overall rents for the year in other major U.S. cities including New York City, Boston, Washington D.C., Los Angeles, and Chicago.
While the trend is expected to continue in that direction, there are also many proposed projects that suggest anything but a scarcity of residential units in Philadelphia. In fact, according to data from the Center City District, residential developments constitute the majority of development projects in the core of Philadelphia. Up to 10,721 individual residential units were completed in 2015, with 4,185 more currently under construction. Finite data on 2016 has not become available yet, but these figures are expected to be matched, if not increased, over this past year. That’s not to mention the plans for several thousand new units that are already announced for the upcoming years and the countless rehabilitation projects in the works.
All of this is to accommodate a blooming and booming Philadelphia. In the past decade this city has experienced growth of every kind. In particular, the population has grown rapidly, increasing 17% since 2000, and it shows no signs of slowing down.
Philadelphia is a burgeoning city in every respect – growing population, large scale housing developments, new retail spaces, innovative skyscrapers, and, last but not least, job growth. Now more than ever, this is the place to be.
Meanwhile, as many new housing units constructed in the city contribute to the growing rental market, Philadelphia is also an attractive locale for buying. While the past month or two has seen a spike in mortgage rates, given the cost of buying in Philadelphia, which remains low compared to its East Coast neighbors, payments remain manageable.
A comparison of median listing prices in New York City ($748,000), Boston ($635,000), Washington, D.C. ($530,200), and Philadelphia ($150,000) shows that this is the city to be buying in.
While prices have gone up in recent years, Philadelphia is still an exceedingly attractive option primarily because of what you can get for your money in comparison to other major cities along the East Coast. In terms of square footage, outdoor space, parking, and updated amenities, your target price range can get you pretty far.
The cost of buying a home in Philadelphia has remained reasonable for the present, although the city is expected to see a continued and increased rise in home values all around. Getting in now could turn out to be a great investment in light of current market predictions.
Not only do you get more bang for your buck, Philadelphia has and is projected to experience a sustained period of growth. Now more than ever is the time to get in while the market is hot and full of a whole range of options for your specific needs and price range.
Beyond saving money today and investing in the future by buying a home in Philadelphia, this option also opens up countless opportunities for customizing your living space. This harkens a welcome chance for personalizing your own home and tailoring it to your needs which is an exciting prospect for first time homebuyers and veterans to the process alike.
Unless otherwise noted facts and figures courtesy of the Center City District State of Center City 2016 report, with the exception of the median price comparison statistics which are from Zillow.