Philadelphia Housing market
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 Sale
2,674
Airbnb Properties
1,399
Rental Properties
16,328
Traditional Vacancy rate
7.80%
Airbnb Occupancy Rate
57.76%
Mashmeter
73.18%
Median Price
$329,163
Median Rent Price
$1,654
Price/sqft
$438
Median Days on Market
87
Price to Rent Ratio
19.0
Average Cap Rate
Airbnb
4.08%
Traditional
2.51%
Average Rental Income
Airbnb
$2,191
Traditional
$1,442
 
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$1,439$912$1,137$1,430$1,754
Philadelphia, PA - Homes for Sale - Newly Listed
Investment Properties for Sale
$89,900
MLS PAPH833472
4953 N 2ND STREET
Philadelphia, PA 19120
Olney
Townhouse
3 beds1 baths1,120 sq.ft.
CAP RATE
Trad. 4.78%Airbnb 2.84%
Investment Properties for Sale
$1,295,000
MLS PAPH810746
429 S 20TH STREET
Philadelphia, PA 19146
Rittenhouse
Townhouse
4 beds4 baths2,800 sq.ft.
CAP RATE
Trad. 0.43%Airbnb 1.53%
Investment Properties for Sale
$3,200,000
MLS PAPH833342
1414 S PENN SQUARE #41B
Philadelphia, PA 19102
Center City
Condo/Coop
3 beds5 baths3,048 sq.ft.
CAP RATE
Trad. -2.82%Airbnb -2.18%
Investment Properties for Sale
$149,900
MLS PAPH833514
2534 S BERBRO STREET
Philadelphia, PA 19153
Clearview
Townhouse
3 beds1 baths960 sq.ft.
CAP RATE
Trad. 1.24%Airbnb 7.68%
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
$199,900
MLS PAPH820918
2211 CEDAR STREET
Philadelphia, PA 19125
Fishtown
Single Family Residential
3 beds2 baths1,128 sq.ft.
CAP RATE
Trad. 4.65%Airbnb 7.94%
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
$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. 7.84%Airbnb 7.92%
Recently Sold Homes in Philadelphia, PA
Investment Properties for Sale
$219,000
MLS PAPH787844
41 N PAXON STREET
Philadelphia, PA 19139
Dunlap
Multi Family
0 beds0 baths2,108 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$163,769
MLS
6935 Shelbourne St
Philadelphia, PA 19111
Burnholme
Multi Family
beds baths1,728 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$161,200
MLS PAPH830626
7252 MANSFIELD AVENUE
Philadelphia, PA 19138
West Oak Lane
Multi Family
0 beds0 baths1,840 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$269,900
MLS PAPH831758
4417 PEARSON AVENUE
Philadelphia, PA 19114
Academy Gardens
Multi Family
0 beds0 baths1,815 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
$95,700
MLS PAPH811136
2902 S ROBINSON STREET
Philadelphia, PA 19142
Elmwood
Multi Family
0 beds0 baths1,066 sq.ft.
CAP RATE
Trad. 5.68%Airbnb N/A
Investment Properties for Sale
$89,900
MLS PAPH783912
4819 PENN STREET
Philadelphia, PA 19124
Frankford
Multi Family
0 beds0 baths1,950 sq.ft.
CAP RATE
Trad. 5.40%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
$199,900
MLS PAPH820918
2211 CEDAR STREET
Philadelphia, PA 19125
Fishtown
Single Family Residential
3 beds2 baths1,128 sq.ft.
CAP RATE
Trad. 4.65%Airbnb 7.94%
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
$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. 7.84%Airbnb 7.92%
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
$2,500
MLS PAPH829316
4227 STATION ST
Philadelphia, PA
Manayunk
Townhouse
2 beds2 baths0 sq.ft.
Investment Properties for Sale
$800
MLS PAPH829294
Investment Properties for Sale
$2,500
MLS PAPH833672
Investment Properties for Sale
$1,600
MLS PAPH833688
Philadelphia, PA Open Houses
Investment Properties for Sale
Open 1 PM to 2:30 PM
$1,550,000
MLS PAPH832008
1243 KATER
Philadelphia, PA 19147
Hawthorne
Townhouse
4 beds6 baths4,200 sq.ft.
CAP RATE
Trad. -0.36%Airbnb 0.33%
Investment Properties for Sale
Open 11:30 AM to 1 PM
$245,000
MLS PAPH833214
158 MCCLELLAN STREET
Philadelphia, PA 19148
Pennsport
Townhouse
2 beds1 baths1,160 sq.ft.
CAP RATE
Trad. 1.83%Airbnb 1.44%
Investment Properties for Sale
Open 1 PM to 3 PM
$999,999
MLS PAPH833176
2624 BROWN STREET
Philadelphia, PA 19130
Fairmount
Townhouse
3 beds4 baths2,660 sq.ft.
CAP RATE
Trad. 0.48%Airbnb 0.61%
Investment Properties for Sale
Open 1 PM to 3 PM
$397,000
MLS PAPH833070
1628 E HEWSON STREET
Philadelphia, PA 19125
Fishtown
Townhouse
2 beds2 baths1,182 sq.ft.
CAP RATE
Trad. -0.92%Airbnb -0.01%
Best Philadelphia Neighborhoods for Buying Investment Property
87%
Mashmeter
property price
$375,750
Median
cap rate
7.13%
Traditional
10.76%
Airbnb
rental income
$2,232
Traditional
$3,369
Airbnb
homes for sale
32
occupancy rate
66%
Airbnb
87%
Mashmeter
property price
$695,000
Median
cap rate
4.26%
Traditional
5.06%
Airbnb
rental income
$2,466
Traditional
$2,932
Airbnb
homes for sale
58
occupancy rate
62%
Airbnb
87%
Mashmeter
property price
$643,400
Median
cap rate
3.60%
Traditional
5.43%
Airbnb
rental income
$1,933
Traditional
$2,910
Airbnb
homes for sale
41
occupancy rate
62%
Airbnb
85%
Mashmeter
property price
$474,500
Median
cap rate
4.83%
Traditional
7.14%
Airbnb
rental income
$1,911
Traditional
$2,823
Airbnb
homes for sale
50
occupancy rate
64%
Airbnb
88%
Mashmeter
property price
$699,900
Median
cap rate
4.82%
Traditional
5.58%
Airbnb
rental income
$2,809
Traditional
$3,254
Airbnb
homes for sale
19
occupancy rate
61%
Airbnb
Related Articles
All Philadelphia Neighborhoods