Mashvisor Home

Discover

Philadelphia

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

Select agents


Philadelphia  Real Estate Investment Performance
Facts and Market Trends in Philadelphia
Homes For Sale2,434
Airbnb Properties1,719
Rental Properties9,917
Traditional Vacancy rate8.10%
Airbnb Occupancy Rate57.79%
Mashmeter73.02%
Median Price$277,450
Median Rent Price$1,659
Price/sqft$242
Median Days on Market81
Price to Rent Ratio21.2
Average Cap Rate
Airbnb3.01%
Traditional3.18%
Average Rental Income
Airbnb$2,108
Traditional$1,450
 
Median Household Income$39,759
Population1,580,863
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$1,121$1,330$1,561$2,290$3,486
Traditional$893$933$1,201$1,488$1,805
Philadelphia, PA - Homes for Sale - Newly Listed
$269,900
MLS PAPH1006464
2228 S CLARION STREET
Philadelphia, PA 19148
Lower Moyamensing
Townhouse
2 beds1 baths848 sq.ft.
CAP RATE
Trad. 2.43%Airbnb 0.45%
$1,000,000
MLS PAPH1006342
536 LOMBARD STREET
Philadelphia, PA 19147
Society Hill
Townhouse
3 beds3 baths2,400 sq.ft.
CAP RATE
Trad. 0.86%Airbnb 1.06%
$369,000
MLS PAPH1004514
2018 WALNUT STREET #23D
Philadelphia, PA 19103
Rittenhouse
Condo/Coop
1 beds1 baths700 sq.ft.
CAP RATE
Trad. 1.61%Airbnb 0.78%
$525,000
MLS PAPH1005994
416 S HUTCHINSON STREET #C
Philadelphia, PA 19147
Washington Square
Townhouse
3 beds2 baths1,498 sq.ft.
CAP RATE
Trad. 2.16%Airbnb 3.09%
Top Performing Philadelphia Properties
$119,000
MLS PAPH989320
1624 W WESTMORELAND STREET
Philadelphia, PA 19140
Glenwood
Townhouse
4 beds3 baths2,520 sq.ft.
CAP RATE
Trad. 7.04%Airbnb 7.99%
$254,900
MLS PAPH989706
5635 N UBER STREET
Philadelphia, PA 19141
Ogontz
Townhouse
3 beds2 baths1,254 sq.ft.
CAP RATE
Trad. 2.74%Airbnb 7.98%
$139,000
MLS PAPH994696
1223 E CHELTENHAM AVENUE
Philadelphia, PA 19124
Summerdale
Townhouse
3 beds1 baths1,110 sq.ft.
CAP RATE
Trad. 5.69%Airbnb 7.97%
$350,000
MLS PAPH988866
2033 MORRIS STREET
Philadelphia, PA 19145
Point Breeze
Townhouse
4 beds2 baths1,592 sq.ft.
CAP RATE
Trad. 5.12%Airbnb 7.96%
Recently Sold Homes in Philadelphia, PA
$292,000
MLS PAPH829240
11742 BRANDON PLACE
Philadelphia, PA 19154
Normandy Village
Multi Family
3 beds1 baths1,380 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$180,000
MLS
1759 NORTH 61ST STREET
Philadelphia, PA 19151
Overbrook
Multi Family
3 beds1 baths1,276 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$0
MLS
6554N SMEDLEY ST
Philadelphia, PA 19126
Ogontz
Multi Family
3 beds2 baths1,260 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$149,000
MLS
5629 PEMBERTON ST
Philadelphia, PA 19143
Cobbs Creek
Multi Family
3 beds1 baths1,194 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
$170,000
MLS PAPH976644
1860 N RINGGOLD STREET
Philadelphia, PA 19121
Strawberry Mansion
Multi Family
0 beds0 baths1,728 sq.ft.
CAP RATE
Trad. 7.98%Airbnb N/A
$169,900
MLS PAPH939018
1219 W DAUPHIN STREET
Philadelphia, PA 19133
Hartranft
Multi Family
0 beds0 baths1,546 sq.ft.
CAP RATE
Trad. 7.51%Airbnb N/A
$165,000
MLS PAPH976638
3063 N 26TH STREET
Philadelphia, PA 19132
Allegheny West
Multi Family
0 beds0 baths1,600 sq.ft.
CAP RATE
Trad. 6.78%Airbnb N/A
$164,900
MLS PAPH942948
6107 CEDAR AVENUE
Philadelphia, PA 19143
Cobbs Creek
Multi Family
0 beds0 baths1,700 sq.ft.
CAP RATE
Trad. 6.71%Airbnb N/A
Homes Below Median Price in the Philadelphia, PA Real Estate Market
$119,000
MLS PAPH989320
1624 W WESTMORELAND STREET
Philadelphia, PA 19140
Glenwood
Townhouse
4 beds3 baths2,520 sq.ft.
CAP RATE
Trad. 7.04%Airbnb 7.99%
$254,900
MLS PAPH989706
5635 N UBER STREET
Philadelphia, PA 19141
Ogontz
Townhouse
3 beds2 baths1,254 sq.ft.
CAP RATE
Trad. 2.74%Airbnb 7.98%
$139,000
MLS PAPH994696
1223 E CHELTENHAM AVENUE
Philadelphia, PA 19124
Summerdale
Townhouse
3 beds1 baths1,110 sq.ft.
CAP RATE
Trad. 5.69%Airbnb 7.97%
$350,000
MLS PAPH988866
2033 MORRIS STREET
Philadelphia, PA 19145
Point Breeze
Townhouse
4 beds2 baths1,592 sq.ft.
CAP RATE
Trad. 5.12%Airbnb 7.96%
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
$64 per night
Entire home/apt · 1 bed
Art Museum Area Stunning Studio
1043
$117 per night
$86 per night
$127 per night
Philadelphia, PA Homes for Rent
$1,000
MLS PAPH1006612
6322 NEWTOWN AVENUE #1ST FL
Philadelphia, PA
Lawndale
Single Family
2 beds1 baths900 sq.ft.
$1,450
MLS PAPH1006926
437 E GIRARD AVENUE
Philadelphia, PA
Fishtown
Single Family
2 beds1 baths2,952 sq.ft.
$1,500
MLS PAPH1006866
$800
MLS PAPH1006608
Philadelphia, PA Open Houses
Open 1 PM to 2 PM
$1,000,000
MLS PAPH1006342
536 LOMBARD STREET
Philadelphia, PA 19147
Society Hill
Townhouse
3 beds3 baths2,400 sq.ft.
CAP RATE
Trad. 0.86%Airbnb 1.06%
Open 11 AM to 1 PM
$535,000
MLS PAPH1005818
2603 MEMPHIS STREET
Philadelphia, PA 19125
East Kensington
Townhouse
4 beds3 baths2,300 sq.ft.
CAP RATE
Trad. 3.24%Airbnb 5.59%
Open 12 PM to 2 PM
$324,900
MLS PAPH1006182
2561 E LEHIGH AVENUE
Philadelphia, PA 19125
Port Richmond
Townhouse
3 beds2 baths1,664 sq.ft.
CAP RATE
Trad. 3.06%Airbnb 4.82%
Open 12:30 PM to 2:30 PM
$1,650,000
MLS PAPH1003322
302 S 3RD STREET
Philadelphia, PA 19106
Society Hill
Townhouse
4 beds3 baths3,995 sq.ft.
CAP RATE
Trad. 0.04%Airbnb -0.11%
Best Philadelphia Neighborhoods for Buying Investment Property
75%
Mashmeter
property price
$490,000
Median
cap rate
6.28%
Traditional
6.80%
Airbnb
rental income
$2,565
Traditional
$2,776
Airbnb
homes for sale
68
occupancy rate
60%
Airbnb
87%
Mashmeter
property price
$342,450
Median
cap rate
7.58%
Traditional
10.65%
Airbnb
rental income
$2,162
Traditional
$3,039
Airbnb
homes for sale
46
occupancy rate
61%
Airbnb
87%
Mashmeter
property price
$614,500
Median
cap rate
3.79%
Traditional
5.89%
Airbnb
rental income
$1,940
Traditional
$3,014
Airbnb
homes for sale
42
occupancy rate
63%
Airbnb
85%
Mashmeter
property price
$454,950
Median
cap rate
5.40%
Traditional
7.62%
Airbnb
rental income
$2,048
Traditional
$2,888
Airbnb
homes for sale
28
occupancy rate
65%
Airbnb
85%
Mashmeter
property price
$574,500
Median
cap rate
5.29%
Traditional
6.38%
Airbnb
rental income
$2,532
Traditional
$3,055
Airbnb
homes for sale
24
occupancy rate
61%
Airbnb
All Philadelphia Neighborhoods