Philadelphia Housing market
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Philadelphia, commonly referred to as “Philly”, is located in southeastern Pennsylvania and has the largest population in the state. Its population of over 1.5 million makes it the 5th most populous city in the United States. The greater Philadelphia region also boasts a high growth in its millennial population, leading the nation.

Almost half of the residents (49.4% according to NeighborhoodScout) are renters rather than homeowners. So not only is the large and growing population a good sign for real estate investors on its own, but buying a rental property in Philadelphia means plenty of demand from tenants.

It’s also important to note that this population consists of a highly educated workforce who supports the health of the local economy. The 1.4% job growth rate year over year is another positive sign of the strong and steady economy in the Philadelphia-Camden-Wilmington metropolitan area. While Philadelphia has historically relied on the manufacturing industry, it has become a more diverse economy in recent decades. Leading industries in Philly include finance, telecommunications, biomedicine, medicine and pharmaceutics, insurance, technology, and printing and publishing. Of course, with all of its famous historic attractions like the Liberty Bell Center, the National Constitution Center, and the Museum of the American Revolution, tourism plays a big role in the economy of the city as well.

The Philadelphia real estate market is in the top five housing markets in the Northeast region of the US for overall investment prospects, according to the annual report by the PWC. This is mainly due to the fact that Philadelphia real estate offers both affordability and the advantages of a highly populated city.

Philadelphia Realtors and Real Estate Agents

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Philadelphia  Real Estate Investment Performance
Facts and Market Trends in Philadelphia
Homes For Sale
2,585
Airbnb Properties
1,399
Rental Properties
16,382
Traditional Vacancy rate
7.80%
Airbnb Occupancy Rate
57.76%
Mashmeter
73.18%
Median Price
$321,390
Median Rent Price
$1,654
Price/sqft
$447
Median Days on Market
88
Price to Rent Ratio
18.6
Average Cap Rate
Airbnb
3.93%
Traditional
2.37%
Average Rental Income
Airbnb
$2,202
Traditional
$1,439
 
Median Household Income
$39,759
Population
1,580,863
Transportation in Philadelphia
79 / 100
Very Walkable
67 / 100
Good Transit
66 / 100
Bikeable
Philadelphia  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,629$1,544$1,819$2,072$3,132
Traditional$1,418$910$1,135$1,427$1,751
Philadelphia, PA - Homes for Sale - Newly Listed
Investment Properties for Sale
$499,999
MLS PAPH831692
2661 ALMOND STREET
Philadelphia, PA 19125
Port Richmond
Townhouse
4 beds3 baths2,800 sq.ft.
CAP RATE
Trad. 0.80%Airbnb 0.28%
Investment Properties for Sale
$184,900
MLS PAPH832014
48 W HAINES STREET
Philadelphia, PA 19144
Germantown West Central
Single Family Residential
3 beds1 baths1,344 sq.ft.
CAP RATE
Trad. 0.63%Airbnb 1.93%
Investment Properties for Sale
$199,900
MLS PAPH831884
2040 N LAWRENCE STREET
Philadelphia, PA 19122
West Kensington
Single Family Residential
4 beds1 baths1,440 sq.ft.
CAP RATE
Trad. 3.70%Airbnb 3.78%
Investment Properties for Sale
$159,900
MLS PAPH831332
2317 E CABOT STREET
Philadelphia, PA 19125
Fishtown
Townhouse
2 beds2 baths743 sq.ft.
CAP RATE
Trad. 5.64%Airbnb 7.89%
Top Performing Philadelphia Properties
Investment Properties for Sale
$122,000
MLS PAPH510592
1324 LOCUST STREET #327
Philadelphia, PA 19107
Washington Square
Condo/Coop
0 beds1 baths0 sq.ft.
CAP RATE
Trad. 2.95%Airbnb 7.98%
Investment Properties for Sale
$209,900
MLS PAPH814522
1417 S MARSTON STREET
Philadelphia, PA 19146
Grays Ferry
Townhouse
3 beds2 baths1,070 sq.ft.
CAP RATE
Trad. 1.88%Airbnb 7.93%
Investment Properties for Sale
$254,000
MLS PAPH815600
324 GLEN ECHO ROAD
Philadelphia, PA 19119
Mount Airy West
Townhouse
3 beds1 baths1,360 sq.ft.
CAP RATE
Trad. 1.64%Airbnb 7.92%
Investment Properties for Sale
$149,900
MLS PAPH826828
2507 W MASTER STREET
Philadelphia, PA 19121
Sharswood
Townhouse
3 beds1 baths1,274 sq.ft.
CAP RATE
Trad. 4.50%Airbnb 7.90%
Recently Sold Homes in Philadelphia, PA
Investment Properties for Sale
$285,000
MLS PAPH802474
1003 FANSHAWE STREET
Philadelphia, PA 19111
Oxford Circle
Multi Family
0 beds0 baths1,702 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$97,000
MLS PAPH811128
6147 CALLOWHILL STREET
Philadelphia, PA 19151
Haddington
Multi Family
0 beds0 baths1,800 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$279,900
MLS 1008355204
6613 N 7TH STREET
Philadelphia, PA 19126
East Oak Lane
Multi Family
0 beds0 baths2,392 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$669,000
MLS PAPH100039
745 S 11TH STREET
Philadelphia, PA 19147
Hawthorne
Multi Family
0 beds0 baths2,593 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Philadelphia Housing Market

The Philadelphia housing market promises not only affordable real estate but significant property appreciation as well. Since Q1 of 2000, Philadelphia home values have experienced a total appreciation of 141% at an average annual rate of 4.7% (according to NeighborhoodScout). Zillow forecasts that Philadelphia real estate will continue to appreciate by 9.4% over the next year. This combination of cheap real estate and high natural appreciation makes Philadelphia investment properties a great option for investors.

Property investors should keep in mind, however, that the Philadelphia real estate market is currently a hot seller’s market. This is mainly due to the low inventory of homes for sale. As a result, property prices are rising in the market even though they are still affordable compared to most major metro areas in the US housing market.

Philadelphia, PA Top Multi Family Homes
Investment Properties for Sale
$79,900
MLS 1009998360
536 E WESTMORELAND STREET
Philadelphia, PA 19134
Upper Kensington
Multi Family
0 beds0 baths1,503 sq.ft.
CAP RATE
Trad. 7.64%Airbnb N/A
Investment Properties for Sale
$125,000
MLS PAPH824332
2511 N 33RD STREET
Philadelphia, PA 19132
Strawberry Mansion
Multi Family
0 beds0 baths1,576 sq.ft.
CAP RATE
Trad. 7.56%Airbnb N/A
Investment Properties for Sale
$129,900
MLS PAPH820812
4425 N 5TH STREET
Philadelphia, PA 19140
Hunting Park
Multi Family
0 beds0 baths1,232 sq.ft.
CAP RATE
Trad. 7.38%Airbnb N/A
Investment Properties for Sale
$90,000
MLS PAPH823042
1317 N. 56TH
Philadelphia, PA 19131
Carroll Park
Multi Family
0 beds0 baths1,236 sq.ft.
CAP RATE
Trad. 6.39%Airbnb N/A
Homes Below Median Price in the Philadelphia, PA Real Estate Market
Investment Properties for Sale
$122,000
MLS PAPH510592
1324 LOCUST STREET #327
Philadelphia, PA 19107
Washington Square
Condo/Coop
0 beds1 baths0 sq.ft.
CAP RATE
Trad. 2.95%Airbnb 7.98%
Investment Properties for Sale
$209,900
MLS PAPH814522
1417 S MARSTON STREET
Philadelphia, PA 19146
Grays Ferry
Townhouse
3 beds2 baths1,070 sq.ft.
CAP RATE
Trad. 1.88%Airbnb 7.93%
Investment Properties for Sale
$254,000
MLS PAPH815600
324 GLEN ECHO ROAD
Philadelphia, PA 19119
Mount Airy West
Townhouse
3 beds1 baths1,360 sq.ft.
CAP RATE
Trad. 1.64%Airbnb 7.92%
Investment Properties for Sale
$149,900
MLS PAPH826828
2507 W MASTER STREET
Philadelphia, PA 19121
Sharswood
Townhouse
3 beds1 baths1,274 sq.ft.
CAP RATE
Trad. 4.50%Airbnb 7.90%
Philadelphia Airbnb Growth and Regulations

Because Philly offers unique historical attractions to tourists, it comes as no surprise that the vacation rental industry prospers in the city. In fact, Airbnb growth as been so great in the Greater Philadelphia region (a five-county area) that local hosts made over $6.2 million in additional income in 2018. Airbnb Philadelphia alone welcomed the most guests bringing with them $47.7 million in revenue for hosts in the city. This is all thanks to the legalization of Airbnb in Philly in 2015. The city hoped to capitalize on the upcoming visit of Pope Francis through short-term rentals. So zoning laws were changed and Airbnb rental properties have since been allowed to operate in residential areas. This makes it one of the best cities for Airbnb investment.

Even though the practice is legal, if you wish to rent out a non-owner occupied property, you will have to apply for a visitor’s accommodation variance. Beside that, to operate legally, Airbnb Philly hosts will have to pay an 8.5% hotel tax. There is also a cap on the days an Airbnb rental can be occupied by guests- up to 30 days at one time and up to 180 days in a year. The property cannot be occupied by more than 3 people who aren’t related at one time. There are also safety regulations hosts must abide by such as installing smoke alarms on every floor, in each bedroom, and in hallways near bedrooms of the Airbnb rental property. Carbon monoxide alarms must also be installed.

In addition to those Airbnb regulations, a Philadelphia host cannot make changes to the rental property for the purpose of renting it out on a vacation rental website nor can you advertise using lawn signs or the like.

Philadelphia, PA Top Airbnb Homes
Philadelphia Airbnb
$71 per night
Entire home/apt · 3 beds
Art Museum Area Stunning Studio
789
Philadelphia Airbnb
$115 per night
Entire home/apt · 1 bed
Modern Loft in Landmark Building
718
Philadelphia Airbnb
$96 per night
Entire home/apt · 2 beds
Rittenhouse Sq 1BR Apt w/Grdn Patio
673
Philadelphia Airbnb
$103 per night
Entire home/apt · 1 bed
The Philadelphia Experience - A
629
Philadelphia, PA Homes for Rent
Investment Properties for Sale
$2,400
MLS PAPH827206
Investment Properties for Sale
$2,100
MLS PAPH831728
Investment Properties for Sale
$1,190
MLS PAPH831944
Investment Properties for Sale
$1,568
MLS PAPH831646
3201 RACE STREET #503
Philadelphia, PA
Powelton
Apartment
1 beds1 baths494 sq.ft.
Philadelphia, PA Open Houses
Investment Properties for Sale
Open 12 PM to 2 PM
$309,900
MLS PAPH831568
1502 N LAWRENCE STREET
Philadelphia, PA 19122
Old Kensington
Townhouse
2 beds1 baths1,104 sq.ft.
CAP RATE
Trad. 2.10%Airbnb 2.66%
Investment Properties for Sale
Open 11 AM to 1 PM
$459,900
MLS PAPH830114
634 HOFFMAN STREET
Philadelphia, PA 19148
Greenwich
Townhouse
3 beds2 baths0 sq.ft.
CAP RATE
Trad. 0.14%Airbnb 1.00%
Investment Properties for Sale
Open 12 PM to 1:30 PM
$565,000
MLS PAPH831446
1414 S PENN SQUARE #15G
Philadelphia, PA 19102
Center City
Condo/Coop
1 beds2 baths894 sq.ft.
CAP RATE
Trad. 0.39%Airbnb 0.61%
Investment Properties for Sale
Open 12 PM to 1 PM
$295,000
MLS PAPH830714
140 MCCLELLAN STREET
Philadelphia, PA 19148
Pennsport
Townhouse
2 beds1 baths1,116 sq.ft.
CAP RATE
Trad. 1.00%Airbnb 0.68%
Best Philadelphia Neighborhoods for Buying Investment Property
87%
Mashmeter
property price
$348,750
Median
cap rate
7.61%
Traditional
11.59%
Airbnb
rental income
$2,212
Traditional
$3,369
Airbnb
homes for sale
30
occupancy rate
66%
Airbnb
87%
Mashmeter
property price
$710,000
Median
cap rate
4.17%
Traditional
4.95%
Airbnb
rental income
$2,467
Traditional
$2,932
Airbnb
homes for sale
56
occupancy rate
62%
Airbnb
87%
Mashmeter
property price
$599,900
Median
cap rate
3.88%
Traditional
5.82%
Airbnb
rental income
$1,939
Traditional
$2,910
Airbnb
homes for sale
31
occupancy rate
62%
Airbnb
85%
Mashmeter
property price
$449,900
Median
cap rate
5.08%
Traditional
7.53%
Airbnb
rental income
$1,906
Traditional
$2,823
Airbnb
homes for sale
45
occupancy rate
64%
Airbnb
88%
Mashmeter
property price
$749,450
Median
cap rate
4.07%
Traditional
5.21%
Airbnb
rental income
$2,540
Traditional
$3,254
Airbnb
homes for sale
18
occupancy rate
61%
Airbnb
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