The big real estate investing question this year is not whether to invest, but where to invest in real estate.
There has never been a better time to buy a real estate investment. But with all the hottest markets in the current housing market being paraded in front of you, which one should you choose?
The Philadelphia real estate market 2018 would be a smart choice and a safe choice for investing this year.
The truth is, while those hot real estate markets can have some of the best investments, they are also usually the most expensive real estate investments. Add in the competition from property investors and homebuyers alike, beginner real estate investors will have trouble breaking into such housing markets.
When it comes to the Philadelphia real estate market 2018, it’s a somewhat different story. Let us tell you the real estate investing story of Philadelphia.
Philadelphia Real Estate Market 2018: The BackStory
Philly’s Economy
You probably haven’t heard much about the Philadelphia real estate market 2018, its economy or much else for that matter. But, believe it or not, that can be a good thing for a property investor. It’s simply because it can be a sign of stability, one of the best things for successful real estate investing.
No one’s saying the economy of Philadelphia is soaring nor are they saying it’s something Philadelphia real estate investors should worry about. Instead, know that when you invest in Philadelphia real estate, you’ll be surrounded by an economy that is growing, slowly but steadily. This makes for a low-risk Philadelphia real estate investment with the potential to greatly appreciate as the surrounding location experiences growth.
Want alternative real estate markets to invest in? Read: The Best Cities to Invest in Rental Properties in 2018
Philly’s Job Market
Addition of jobs is, of course, a major factor in the growth as well as the key to the rising demand for Philadelphia investment property. In 2017, the rate of job growth in Philadelphia was actually faster than that of the national rate.
Even with a fast-growing job market, a Philadelphia investor might be wary of the high unemployment rate of 6.2%. Although much higher than the national unemployment rate, it is declining more than anywhere else in the country. This means things are improving in the Philadelphia real estate market 2018.
As real estate investors know, a location with obvious signs of improvement and growth make for the best places to invest in real estate. This is due to the fact that Philadelphia property prices are affordable compared to everywhere else in the current housing market and are likely to see some appreciation as the city improves more and more.
Philly’s Population
Because of this growing job market, the Philadelphia real estate market 2018 enjoys steady population growth. Just another box to tick in the checklist for the best place to invest in real estate. This population growth furthers the positive trends of the economy, mostly because of the large influx of residents that are more educated and wealthier.
Why the BackStory Matters
Keep in mind that while the backstory doesn’t paint an ideal picture and the Philadelphia real estate market 2018 can’t boast all kinds of titles and rankings, it’s heading in the right path. This means great things for a Philadelphia real estate investor who buys investment property right now. The future of the Philadelphia real estate market 2018 and beyond is a bright one for sure.
To start looking for and analyzing the best investment properties in the Philadelphia real estate market 2018, click here.
Philadelphia Real Estate Prices: The Plot Thickens
Let’s continue our investing story with Philadelphia housing market trends. These are significant, of course, to know before you decide to invest in Philadelphia real estate.
Philadelphia Real Estate Market 2018: The Stats
Here are a few key numbers from Mashvisor’s investment calculator to give you a general idea of some of the Philadelphia real estate market trends. To learn more about our product, click here.
Median Property Price: $243,672
Traditional Rental Income: $1,310
Traditional Cash on Cash Return: 2.59%
Traditional Cap Rate: 2.59%
Philly’s Real Estate Prices
This is where the plot thickens in the Philadelphia real estate market 2018. A report from Philly.com earlier this year for the reassessment of Philadelphia real estate prices reported a jump of 10.5% in the median property price. Every Philadelphia investor was stunned, as this reassessment comes along with property tax hikes. With the 10.5% increase, it’s likely taxes would increase somewhere between $500 and $1,712.
While these facts might deter you from investing in Philadelphia real estate, local authorities are doing their best to deal with the situation. A bill came soon after that proposes that the City Council should be able to control Philadelphia property assessments in the future, preventing unnecessary tax hikes. In other words, the City Council is doing its best to remedy the situation for Philadelphia investors and residents alike.
Despite the fear of higher taxes on investment property, real estate appreciation can be a good thing. If you buy now, Zillow predicts that Philadelphia real estate will go up 5.1% as the year continues. Luckily, this is the kind of real estate appreciation that makes it relatively possible to enter the Philadelphia real estate market 2018 and eventually sell an investment property for a good return on investment.
Philly’s Housing Inventory
The housing inventory in the Philadelphia real estate market 2018 is currently tight. This would explain the Philadelphia market trends with the rising prices. But for 2018, a lot of new real estate development is in the works, especially for multi family homes. Single family homes, on the other hand, will continue to give Philadelphia investors fewer options due to tight inventory, even with new construction plans.
Airbnb Philadelphia: The Subplot
The Philadelphia real estate market 2018 is Airbnb-friendly. Airbnb is legal in Philadelphia while other major cities continue to battle Airbnb or enforce strict regulations on these investment properties. Airbnb Philadelphia welcomes real estate investors with open arms.
Airbnb Philadelphia: The Stats
Airbnb Philadelphia Rental Income: $920
Airbnb Philadelphia Cash on Cash Return: 1%
Airbnb Philadelphia Cap Rate: 1%
With an Airbnb occupancy rate of 67% and general short term rentals having reported record occupancy rates in 2017, Airbnb Philadelphia is a great choice for real estate investors in this housing market.
Want to find the best Airbnb investment properties? Then use Mashvisor.
Click here to start your investment property search the right way.
The Best Neighborhoods in Philadelphia for Real Estate Investing
Interested in investing in Philadelphia real estate? You should be. The Philadelphia real estate market 2018 is only getting better and better with time. Even with prices on the rise, they are relatively affordable compared to other popular real estate markets but still offer a great return on investment.
Of course, this return on investment will only come in the best neighborhoods in Philadelphia. Because some Philadelphia neighborhoods are experiencing drops in real estate prices, high crime rates, and loss of population, a Philadelphia real estate investor really needs to be able to differentiate the best neighborhoods in Philadelphia from the not so great ones. Always be sure to check on such facts before investing in Philadelphia real estate.
Mashvisor’s investment calculator can help you out. Here are the best neighborhoods in Philadelphia for real estate investing.
The Best Neighborhoods in Philadelphia for Real Estate Investing
Old Kensington
Median Property Price: $439,999
Traditional Rental Income: $1,583
Traditional Cash on Cash Return: 1.87%
Traditional Cap Rate: 1.87%
Airbnb Rental Income: $2,876
Airbnb Cash on Cash Return: 4.77%
Airbnb Cap Rate: 4.77%
Airbnb Occupancy Rate: 57.57%
Greenwich
Median Property Price: $259,900
Traditional Rental Income: $1,549
Traditional Cash on Cash Return: 3.23%
Traditional Cap Rate: 3.23%
Airbnb Rental Income: $1,814
Airbnb Cash on Cash Return: 4.3%
Airbnb Cap Rate: 4.3%
Airbnb Occupancy Rate: 43.52%
West Poplar
Median Property Price: $502,000
Traditional Rental Income: $1,715
Traditional Cash on Cash Return: 1.32%
Traditional Cap Rate: 1.32%
Airbnb Rental Income: $2,820
Airbnb Cash on Cash Return: 3.37%
Airbnb Cap Rate: 3.37%
Airbnb Occupancy Rate: 51.86%
East Poplar
Median Property Price: $614,900
Traditional Rental Income: $1,730
Traditional Cash on Cash Return: 0.95%
Traditional Cap Rate: 0.95%
Airbnb Rental Income: $3,061
Airbnb Cash on Cash Return: 3.19%
Airbnb Cap Rate: 3.19%
Airbnb Occupancy Rate: 50.28%
East Passyunk
Median Property Price: $332,500
Traditional Rental Income: $1,635
Traditional Cash on Cash Return: 2.41%
Traditional Cap Rate: 2.41%
Airbnb Rental Income: $1,792
Airbnb Cash on Cash Return: 2.89%
Airbnb Cap Rate: 2.89%
Airbnb Occupancy Rate: 44.64%
Dickinson Narrows
Median Property Price: $329,900
Traditional Rental Income: $1,863
Traditional Cash on Cash Return: 2.73%
Traditional Cap Rate: 2.73%
Airbnb Rental Income: $1,720
Airbnb Cash on Cash Return: 2.4%
Airbnb Cap Rate: 2.4%
Airbnb Occupancy Rate: 43.95%
Graduate Hospital
Median Property Price: $479,900
Traditional Rental Income: $1,873
Traditional Cash on Cash Return: 1.92%
Traditional Cap Rate: 1.92%
Airbnb Rental Income: $1,952
Airbnb Cash on Cash Return: 2.11%
Airbnb Cap Rate: 2.11%
Airbnb Occupancy Rate: 45.26%
You can get this kind of real estate data for any housing market right now. Click here to start your 7-day free trial with Mashvisor and subscribe to our services.
To Invest or Not to Invest?
The answer is pretty clear by now. Becoming a Philadelphia real estate investor in 2018 is a good, safe choice. With all aspects that affect real estate investing in the city showing positive trends, and now, with a list of the best neighborhoods in Philadelphia for investing, you can’t go wrong with a Philadelphia real estate investment.
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