Blog Post

2023 Philadelphia Real Estate Forecast

Jan 11, 2023

There’s much to be said about Philadelphia, the City of Brotherly Love. 


Of course, you can start with the cliches about Philly cheesesteaks and Rocky Balboa. You could lean into the city's world-famous passionate, and upfront personality.


Anybody interested in Philadelphia knows of the city’s love of sports. They’ve all heard of the Broad Street Bullies and the Philly Phanatic, and they know about the millions watching the Eagles every Sunday.


Yet, while these facets are ingrained in the city’s deeply woven fabric, they only scratch the surface. 


Philadelphia might be a sports town, but it’s
rich in culture, the arts, and dining opportunities (far beyond the cheesesteak). No matter the time of year, the buzz on the streets is palpable and infectious. The iconic city is an attractive place for anyone wishing to spend their best years in an area with a lively zeal and a flourishing spirit.


It’s then worth asking, how viable is Philadelphia’s real estate? Is it profitable for landlords? Is it affordable for homebuyers and renters? We’ll explore these questions below.


A General Outlook Of Philadelphia’s Cost Of Living

Before getting into the specifics of Philadelphia real estate, let’s examine the general affordability of the city.


According to the Philadelphia Business Journal
, over the past decade, Philadelphia has emerged as one of the nation’s more cost-friendly cities.


However, that statement on its own may be misleading. 


The same article clarifies that the cost of housing and utilities in the metro area is relatively high–or, at least, exceeds national averages. While the city has a well-earned reputation for being easy on the wallet,
more evidence mounts by the day that homebuyers need substantial incomes. 


The kicker in this discussion is the reduced cost of goods. That’s how Philadelphia has gained its track record as a frugal city dweller’s paradise. On top of that, the city has separated itself in the rental market–offering prices far more reasonable than most of the US (we’ll delve more into this topic later). 


For further context, it’s
40% less expensive to live in Philadelphia than it is to live in New York. Then consider that the median household income in Philadelphia is $68,379 while New York’s is $67,046. Residents of Philadelphia can make more and save more than if they lived in the Big Apple.


We’ll look at more numbers below to see how they align with the above summation.


How Much Do Homes Cost In Philadelphia?

Per Wallet Investor, the median price for a typical Philadelphia home is $191,246 (as of January 6, 2023). This number is expected to increase to $195,932 next year and continue this upward trajectory over the next half-decade. More to the point, the median price for the average home in the City of Brotherly Love is expected to reach $213,116 by 2028.


Digging more into these projections, you’ll find that a 5-year investor in an average Philadelphia home will yield almost an 11.5% profit. To better illustrate, investing $100,000 now–in 2023–would likely lead to a $111,440 return by 2028.


By the end of 2023, it’s expected mortgage rates will be at
7.1% after spending most of the year at around 7.4%, says the Philadelphia Business Journal. While prices of homes will continue to rise, the rate of increase is slowing down across the US, leading to the market favoring neither buyers nor sellers. 


Here are a few more considerations:


  • The Philadelphia Business Journal cites that homes will take longer to sell this year and that there is less competition for more available homes. This environment is far more friendly for buyers than in the past two years, which saw aspiring homeowners face stiff competition and low supply.
  • While real estate is expensive in Philadelphia compared to smaller areas, it pales compared to other major metro cities like New York, DC, Washington, and Atlanta. Thus, those who prefer the big city life will find that Philadelphia is one of the more affordable options to satisfy that preference. 


How Much Is Rent In Philadelphia?

Current reports show that the median rent in Philadelphia is $1,221. This number amounts to a 1% month-over-month decrease but is still a 2.4% increase year-over-year. The median price for a one-bed apartment in the city is $1,101, while the two-bedroom median is $1,283.


These numbers represent an advantage for those looking to rent in the city–despite the year-over-year increase. The 2.4% year-over-year jump is eclipsed by the 4% national average.


Furthermore, Philadelphia has a 9.1% lower median rental price than the rest of the US. The median one-bedroom in the US costs $1,153, and $1,321 for a two-bedroom.


So, while prices for homebuyers can get steep in Philadelphia, the landscape for renters is far less fiscally straining. 


Landlords may look at this favorable pricing and hesitate. However, it’s
actually good for them


The lower rental price and reasonable living cost in Philadelphia are attracting renters in droves. Moreover,
employment keeps growing across the city, meaning rental applicants have the income to ensure no payment snafus.


Is Owning A Rental Property In Philadelphia A Guaranteed Success?

Undoubtedly, real estate prices–such as for a rental property–are reasonable enough in Philadelphia. 


What’s more, those who purchase real estate to rent in Philadelphia can rest assured they’re entering a market with plenty of demand because of the city’s thriving culture and affordable cost of living.


That said, nothing in life is guaranteed. 


Success as a rental property owner depends on the owner’s ability to manage the said property (or properties). 


Taking the wrong steps and failing to stay organized will make it far more challenging to attract the best rental applicants at the most return-forward price. It’ll also make it tougher to keep your tenants happy. Then, they’ll be less likely to remain as renters providing that steady, reliable income.


Working with GM Holdings is one way to ensure that a rental property is managed in a manner most conducive to the highest financial returns. We streamline the rental process through our cutting-edge property management software–AppFolio. We ensure everything runs ship-shape, helping you work less to earn more.


Contact GM Holdings today
to learn more about what we can do for your rental property.

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13 May, 2024
Is your apartment space at a dire premium? Are you knocking over vacuum cleaners or stubbing your toe and busting your kneecaps off jagged furniture edges every second day? Are the walls closing in on you, suffocating you, as though your dwelling is shrinking with each passing minute? Take a breath, reassess, and remind yourself that your claustrophobia is only your here and now and won’t be your forevermore, especially after reading our article. And, no, we’re not saying call a realtor and start looking for a three-story colonial palace. Rather, you can make immediate changes that maximize your apartment space to its fullest extent, dramatically increasing your productivity, comfort, and—yes—your mood. All you need to do is follow our tips below, and you’ll go from living in a shoebox to a penthouse, all without leaving your rental unit. Assess Your Furniture And Adjust Accordingly Furniture isn’t always at the heart of an apartment’s issues with dwindling space. Clutter could be the primary culprit, and in many cases, it is. However, you’ve got to apply logic to your problem-solving, and logic dictates that furniture—by its nature—takes up the most space. Thus, you must explore potential alternatives exhaustively, even if you’re besotten by your decor. First and foremost, it’s time to consider multifunctional and space-saving furniture. The following options ensure your apartment's decor provides optimal comfort while preventing clutter: A storage ottoman with inner compartments will help declutter and clear space, giving you space to store clothing, linens, and other accessories. When space is limited, having a separate sofa and bed is inefficient and superfluous. Thus, if you’re a studio apartment dweller, you should invest in a sofa bed so you can enjoy a good night’s sleep without waking up feeling cramped and squeezed in—once you fold your bed back into its couch form. Similarly, a Murphy bed that folds against the wall provides additional floor space, so you can do yoga, play video games, or do whatever you please with unabashed freedom of movement. Your coffee table need not only be a welcoming surface for your beloved morning cuppas. Many options on the market have storage shelves underneath for decorative items, books, and magazines. In the same vein, consider a compact work desk with built-in cabinets, drawers, and shelves for your stationery supplies and personal documents. Other useful options to consider: Nesting tables. Modular shelves. Furniture with hidden storage. Lightweight foldable chairs. Step stool with a storage compartment. Once you’ve decided on your new furniture, assess the general flow to ensure it jives seamlessly with space optimization. Vertical Space: Every Apartment Owner’s Secret Weapon Space isn’t simply what’s in front or behind us; it’s also what’s above us. As you aim to leverage your space, don’t limit yourself to stagnant horizontal thinking; it’s time to kick things up a notch with a more vertical perspective. Additions to your apartment, like over-the-door hooks, wall-mounted shelves, and tall cabinetry (e.g., bookshelves), all utilize your up-and-down space to its fullest extent. This way, you aren’t wasting any inch your apartment offers. Are there any stairs in your apartment? If so, maximize this vertical space with step baskets and built-in drawers to store books, shoes, and other potential forms of clutter. Search For Your Hidden Gems Your space is your space. While you can undoubtedly maximize it with creative and strategic thinking, you still must play the cards you’ve been dealt. You can’t magically wave a wand and add an extra 500 square feet to your unit. None of this is to discourage you—if anything, it’s a rallying cry, a call to action. You need to delve into your apartment's labyrinth and assess it from all angles. Common “gold mines” of space are furnace rooms, the area under your bed, linen closets, and so on. You can bolster those “hidden gems” of space with carefully purchased items like under-bed storage bins, closet organizers, and portable utility carts for your furnace room. Turn Your Bathroom Into A Free-Flowing Paradise Your apartment might not be a single-standing ‘house,’ but it’s no less your home, and your home is a castle. If your apartment is your castle, your bathroom is your paradise of solitude—your most private area where you can just…relax and be you. Harnessing a restroom’s unique sense of freedom becomes much harder when grooming, hygiene, and beauty items are strewn all over the place. Purchasing a vertical shelving unit (potentially located behind your toilet) gives you an area to store all these items without them overruling your lone place of sanctuary. Also, door-mounted (or wall-mounted) hooks are a must for your wet towels, lest they pile up on the floor and rob you of precious spaciousness. Adding wall-mounted shelving units to your shower can also prevent your bathroom from being overrun by a sea of shampoos, conditioners, soaps, and face washes. Clearing the clutter in your bathroom is crucial, as it's often one of the first places you visit in the morning and your last pitstop before bed. Ensuring the space is welcoming and free-flowing will ensure each day starts and ends on the right note. Getting Down To Brass Tacks: It’s Time To Declutter This tip might be difficult for sentimental apartment owners yearning for more space, but it’s a salient piece of advice. You have to declutter. Often, people will explore every avenue of maximizing their space before getting to the nitty-gritty of getting rid of the things they don’t need. We grasp that minimizing your possessions isn’t easy. Even if you’re not sentimental, eliminating clutter is daunting, and the very notion of it is conducive to rampant procrastination. You still need to declutter, though. If you can’t do it alone, consider deputizing a friend to help you and creating an action plan together. You can also consider hiring a trash or clutter removal company to further streamline the process—many services cater to these needs. Lastly, we must stress the importance of compartmentalization. Highly cluttered apartments will take time to separate the wheat from the chaff entirely. Break it into smaller chunks and steadily eat away at the mess. The Power Of Perception: Harnessing Lighting To Maximize Apartment Space Space–or at least our perception of it—can be an optical illusion, but the magic can most certainly be palpable and real. Apply this form of delightful sorcery to maximize your apartment space with these lighting tricks: Use table lamps, string lights, and floor lights to foster an expansive and cozy atmosphere. Avoid standard overhead lighting options; they’re harsh and make your space feel smaller. Warm, soft lights lend a sense of spaciousness to your home. LED light strips under furniture and along the baseboard will provide depth, adding to the “illusion” of broader living space. Carefully placing mirrors throughout your apartment will further enhance your sense of spaciousness. With these tips, you’re more than equipped to maximize your apartment, turning your diminutive space into a sprawling fortress of comfort. Also integral to maximizing your apartment space is renting a large enough unit for your needs to begin with—an area we’re more than familiar with at GM Holdings. Contact us today to learn more about our listings throughout Philadelphia, or view them for yourself.
Philadelphia skyline on a sunny day
27 Mar, 2024
Philadelphia stands alone among big cities, offering renters a heady mix of cultural vibrancy and cost-efficiency. This distinctive trait is a magnet for those wishing to thrive in central hubs while keeping a tight rein on expenses. However, affordability is relative. While Philadelphia is easier on the budget than somewhere like New York, that doesn’t mean tenants are being offered free rent in the City of Brotherly Love. Depending on your financial circumstances, your job, and the part of the city in which you wish to live, things can inevitably get pricey. Let's delve into the numbers. A Philadelphia apartment costs between $1,277 and $1,887. The monthly living cost in the city—rent excluded— hovers around $1,244 for a single person, increasing to $4,459 for a family of four. While these figures appear daunting, don’t allow them to deter your search for an ideal living space. Regardless of your salary or budget, our budget-friendly tips and tricks will help you navigate the sometimes turbulent financial waters of apartment hunting in Philly. Build Your Battle Plan: Map Out Your Expenses Nobody enters an apartment hunt aiming to overspend. Everyone is looking for the ideal balance of comfortable living and affordability. Achieving this happy medium is much easier in theory than in practice. Society, as we know it, does everything in its power to get you to spend while you're trying to save. Apartment hunting is no different. Landlords are looking to turn a profit, after all. Sticking to a budget while living in a space that offers comfort and meets your standards necessitates an ongoing sense of push-pull. Thus, you must draw up your battle plan. That means mapping out apartment and living expenses, including rent, gas, utilities, credit card bills, insurance, groceries, parking, move-in costs, etc., before you start hunting. Keep these suggestions in mind as you plan your budget: Look for rental costs below 30% of your monthly income to afford other living costs. Investigate the average cost of rent across Philly neighborhoods (beyond our generalized numbers in the introduction) to see what areas best fit your price range. Be realistic. Yes, economic choices are a must, but everybody has their limits. Create an expense and budget plan you’ll actually follow, not one that’s too constrictive. Look For Ways To Cut Costs While not always the case, an apartment with less space will cost less than roomier units in the same building (or neighborhood). The above statement might seem obvious, but consider what it can mean to you as you adhere to a strict(ish) budget on your apartment hunt. First and foremost, how much space do you need? If you live alone or even with one roommate, you might be surprised to learn how little space you require to live comfortably. In this instance, living in a more extravagant neighborhood in a smaller unit might be feasible. Conversely, you can move to a slightly bigger place in a more affordable neighborhood. Or, you can live in a smaller place in a more cost-friendly neighborhood to rack up the savings. Consider, too, how apartment units on the middle floors also cost less because people pay more to live on the top and bottom levels. We’ve already seen the broad range of monthly rental costs, meaning prices can vary significantly. Spend adequate time on local apartment rental websites and platforms to get a genuine feel for the rates in your preferred neighborhoods. Also—ask friends who live in the city what they’re paying. Be tactful with your questions, but don’t be afraid to investigate. This concerns your savings and financial future; your close pals (and fellow renters) will gladly offer insights and data. Negotiate A Discount While some property managers and landlords might not be willing to budge on price, others could have some wiggle room. That said, the worst anybody ever said when asked about a discount was ‘no.’ Even if you’re unsure about the other party’s openness to negotiations, it’s a subject worth broaching. An ideal time to capitalize on a negotiation opportunity is if the unit has some issues or if the building lacks your desired amenities. Depending on the circumstances of your prospective apartment, the following tips might also help you procure discounted rates: Offer to sign an extended lease. Say you’ll prepay months in advance. Suggest a 60 or 90-day termination notice stipulation instead of 30 days. Make it clear you won’t smoke inside the unit. Come to an agreement regarding referrals (e.g., monthly reductions when you refer renters). This works in low-occupancy buildings in need of tenants. Inform your prospective property manager you won’t have any cats or dogs (even if they’re allowed in the building). Another consideration is whether you’d want to live somewhere so willing to offer a discount. Be sure you’re not actually the one getting duped. A unit can need fixing up while still being liveable, but that doesn’t mean you should accept living in a borderline uninhabitable environment to save a few bucks. Get Your Finger On The Pulse: Discover Up And Coming Neighborhoods The discount strategies discussed in the previous section raised a question everyone must ask themselves when budgeting for anything: How much quality is worth sacrificing in the name of affordability? It can be a frustrating battle to fight. Often, saving money on an apartment can feel like you must live in a perpetual state of discomfort. Mitigate this issue by thoroughly researching Philly’s apartment rental landscape and finding diamonds in the rough. To boost these efforts, streamline your search to up-and-coming neighborhoods in Philly. Why should you prioritize up-and-coming neighborhoods while on a budget? These are areas with exceptional places without being oversaturated. Get in on the ground floor before things take off and become less affordable. For instance, you’re likelier to find a cost-friendly, high-quality apartment in on-the-rise Harrowgate than in a more established spot like Rittenhouse Square. Budgeting requires thorough research and a healthy lay of the land. The best way to get a beat on the Philly rental landscape is to tap into resources (like blogs) from industry experts who can steer you in the right direction. Be Aware Of Your Rights As A Renter On your hunt for budget-friendly apartment rentals, you might encounter landlords and property managers trying to exploit your frugal inclinations. They could mistake your cost-consciousness as a weakness and an excuse to trample on your rights. Familiarize yourself with what you’re entitled to as a renter. One of those rights is habitable living circumstances. Your landlord must legally uphold specific standards regardless of what you pay monthly for your apartment. Click here to learn those standards . Conclusion: Philly Is A Haven For Budget-Conscious Apartment Hunters Who Follow Our Tips Follow the tips suggested in this article, and you’ll be surprised at how seamlessly a budget-friendly apartment falls into your lap. Philadelphia is rich with these hidden gems throughout its accessible, culturally vibrant neighborhoods. We’ll reiterate the need for patience and strategy. These cost-efficient living options won’t materialize from thin air. It will take your keen eye, developed through research and careful calculations, to land you in your desired unit. Help your cause further by contacting an industry expert like GM Holdings with your inquiries. We know the Philly apartment rental landscape like the back of our hands and are happy to provide insights to help you save on rent.
27 Mar, 2024
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