The year 2018 is looking promising for many real estate markets dispersed around the country. Buying an investment property in the Philadelphia real estate market, in particular, poses a grand investment opportunity for many real estate investors. Many analysts have characterized the city as rapidly increasing in population and consequently in amenities, attractions, and educational institutions. New construction efforts have certainly attracted investors from all over the United States and particularly New York City. Indeed, the city is transforming into a modern location, an alternative to many of the lavish metropolitan cities in the United States. According to real estate investment analysis, Philadelphia and its neighborhoods have come to be increasingly sought after today.
Related: Where to Look for the Best Real Estate Investments for 2018
Studies have confirmed the viability of investing in Philadelphia real estate, but what is all this activity relying on? What residential real estate trends are driving investors to invest in Philadelphia real estate? Below we explore these trends.
In this article, we at Mashvisor have collected and put together the top reasons that are encouraging and drawing in investors to invest in Philadelphia real estate. We then propose the outlook for Philadelphia real estate 2018 and offer top neighborhoods that are worthy of note.
Analysts are expecting a major construction boom in the Philadelphia real estate market in the year of 2018. According to research conducted by JLL Philadelphia, the city will witness about 8 million square feet of new construction. These new efforts will mainly target the triangle between East Market, University City, and Navy Yard.
Construction permits, moreover, are bound to increase. Actually, in 2016, the number of construction permits hit a record-breaking level of 1,802 new permits. 2018 is looking much like 2016. Analysts expect many of the new permits to go into the construction of new residential units across the city. The new construction efforts are a response to the demand seen for housing across neighborhoods in Philadelphia.
Best for Millennials
In 2017, reports ranked Philadelphia as the sixth best city for millennials. Philadelphia truly has been and continues to be a predilection for many of those aged between 28 and 33 years. The growing job market, the greater availability and affordability of housing, the improved amenities, and the vibrant downtown scene have all come to contribute to why millennials continue to choose to invest in Philadelphia real estate. However, the majority of millennials continue to rent instead of own their homes. In areas such as Camden, Wilmington, Philadelphia, and Delaware, for example, only 36% of millennials owned property. Although housing remains to be expensive for millennials, yet they come to constitute a larger portion of the population year by year. If you are a millennial and looking for an enabling environment surrounded by other millennials, then we recommend that you further look into Philadelphia real estate.
Related: Should You Be Investing in the Philadelphia Real Estate Market at the Moment?
Presence of National Realty Investment Advisors (NRIA)
The purpose of real estate development projects is to provide investment opportunities for investors and allow them to score high on all fronts: style, comfort, space, and equity. The more the development projects, the more accessibility and profitability a real estate investor will enjoy. What distinguishes Philadelphia real estate from other cities around the United States, in particular, is the strong presence of the National Realty Investment Advisors, LLC (NRIA) firm. As one of America’s most trusted investment firms, NRIA ensures high profitability of its investment plans. When you invest as little as $110,000 with 100% financing, you get a newly constructed rental property with a 5-year-built-in rent guarantee. We highly recommend that you further look into development projects and NRIA in particular, if you are looking for a positive cash flow generating investment.
Philadelphia real estate offers abundance of lifestyles across various neighborhoods. Below is a list of top neighborhoods that are worthy of a real estate investor’s attention.
- Median Home Value: $541,00
- Median Rent: $1,500
Known as the city’s garden, Chestnut Hill is a paradise for many. The neighborhood has the most amenities per capita, the best quality of life, least crimes, and the most high school graduates. The neighborhood has a population of about 10,650, with half owning property. In 2017, the town ranked the second best neighborhood to live in the Philadelphia area and the best to raise a family in. If you are looking to invest in a property in an area which provides a good quality of life, we recommend Chestnut Hill.
Related: Why You Should Be Investing in Philadelphia Real Estate
- Median Home Value: $270,000
- Median Rent: $1,200
Fairmount lies within the Greater District of the city of Philadelphia bordered by Spring Garden Street, Broad Street, and Girard Avenue. Fairmount enjoys an artistic scene being home to the Philadelphia Museum of Art and Eastern State Penitentiary, among many others. The Champs-Elysees has inspired the boulevard, which also continues to derive foot traffic. The neighborhood is more affordable as compared to others around it, with over 55% of population owning property.
- Median Home Value: $218,000
- Median Rent: $1,000
Located in the Northwest of the city of Philadelphia, Roxborough remains to be a top attraction for many real estate investors. The neighborhood, ranked the 7th best neighborhood to buy a house in the Philadelphia area in 2017, is one of the least violent neighborhoods in Philadelphia, and the 4th with most amenities per capita. Although rent is relatively cheaper than it is in surrounding areas, about 67% of the population owns property. If you are looking for an investment with high return within Philadelphia real estate, we recommend that you further look into Roxborough.
Whether it is Roxborough, Fairmount, or Chestnut Hill, investing in the Philadelphia real estate market sounds like a plausible decision to take in 2018. Not only is construction significantly booming, but the job market is as well. The quality of life, moreover, is another reason why many turn to Philadelphia for investment. The varied residential real estate trends, additionally, have made it possible for many to purchase and own property.
For more information about Philadelphia real estate, we encourage you to browse our knowledge center at Mashvisor.