Metro Reports Multifamily Market Real Estate Trends

Philadelphia Real Estate Market Trends – Fall 2020

Philadelphia real estate market fall 2020
Image by Sean Pavone/

Multifamily Sector Withstands Hardship

While the effects of the health crisis continued to shape the metro’s economy going into the fourth quarter, Philadelphia’s multifamily fundamentals remained largely resilient. Rents were up 0.4% to $1,424 on a trailing three-month basis as of October, slightly below the $1,464 U.S. average, which remained flat during the same time frame.

As of September, unemployment totals stood at 7.9% for the metro area, down 320 basis points from August and on par with the September national rate. According to a report from the Center City District, some 101,000 Philadelphia residents became unemployed between March and April. About 47,000 jobs had returned by September, when the number of Philadelphians receiving unemployment benefits slid to 64,000 from more than 100,000 over the summer.

Philadelphia had 12,154 multifamily units under construction as of October, 95% of which target are aimed at high-income renters. The bulk of the pipeline (56%) is expected to come online over the next two years. A total of $319 million in assets traded in 2020 through October, a steep 79% decline compared to the same period last year. The drop in deal volume is the combined outcome of economic volatility and five consecutive years of robust sales and development activity.

Read the full Matrix Multifamily Philadelphia Report-Fall 2020

About the author

Timea-Erika Papp

Timea Papp is a Senior Associate Editor with Commercial Property Executive and Multi-Housing News. She joined CPE and MHN in 2017 and has been working in the real estate industry since 2011. Timea's key focus areas include finance pieces for the CPE Capital Markets and MHN Finance & Investment newsletters and metro-focused multifamily market reports for Yardi Matrix.

Add Comment

Click here to post a comment