Real Estate News

Is Philadelphia the new home market to watch?

Published: 25 May 2017

With the current concerns over urban crowding, it's understandable that new buyers might want to keep their options open for places to live. However, as far as cities go, Philadelphia seems to be attracting attention. Compared to others, it may prove to be a more affordable and strategic place to purchase a home, according to new data from multiple sources.

First, there's Econsult Solutions, which measured this April's housing sales prices in the city compared to those of a year ago. The average price is 22.2 percent higher than it was, and a statement from the firm shows the housing index roughly doubling between 2001 and 2017. The source said that Philadelphia may benefit from the movement away from suburbs to the cities, even though it came "relatively late" to this trend.

The City of Brotherly Love also has other advantages over some of its competitors. For an East Coast city, it's surprisingly affordable, according to HSH.com. That source looked at the salary someone would need to afford a home at median price in cities across the country.

Philadelphia had far from the lowest desired salary on this list (that would belong to another Pennsylvania city, Pittsburgh), but it stood out compared to more expensive cities like Boston, New York City and Orlando, Florida. The exact ideal salary for Philadelphia  was $52,354.73, with a monthly payment of $1,221.61. This salary was also, significantly, lower than the national figure, which was $52,969.46.

The source also said that the median home price in Philadelphia for the first quarter of 2017 was $209,000, which was 5.69 percent lower than the same figure just one quarter earlier. All of the East Coast cities had a much lower necessary salary than their counterparts in the west, where San Francisco commanded the highest required income of $161,110.33.