As fall comes, many think about moving to Philadelphia or its suburbs. They often ask, "What's the average rent?" and "Is $2,500 a month too much?" To answer these, we'll look at the latest numbers and trends in Philly's rental market.
The average rent in Philadelphia is $1,443. This is a small increase of 1.1% in the last month and 0.6% over the past year1. This growth is slightly more than the state's 0.7% and beats the national drop of -0.7%1. Also, rent in Philly is about 7.7% cheaper than the rest of the metro area, which is $1,563. Philadelphia is the 50th priciest big city in the US1. For more, you can check out this link.
Key Takeaways
- Philly's median rent is $1,443, with a recent 1.1% upswing1.
- It's growing faster than the national average, which fell by -0.7%1.
- Rents in Philly are 7.7% lower than in the broader metro area1.
- It ranks as the 50th most expensive large city in the USA1.
- Knowing the current average rent helps figure out if $2,500 a month is normal in Philly1.
Introduction to Philadelphia's Rental Market
Philadelphia's rental market is bustling and offers many living options. It's important for renters to get to know the local scene because it changes from one area to another2.
Philadelphia's Unique Rental Landscape
The rental scene in Philly is shaped by its varied economy, culture, and geography. Because of this, rental prices can really vary depending on where you are in the city. Recent stats show that 59% of homes in Philly are more affordable to buy than rent, showing the city's unique housing costs2.
Even though Philly's population dropped by 36,541 by July 2022, there were 24,701 new homes added between 2020 and 20212. This shows the market is still changing and adapting.
Why Rent Prices Matter
Knowing about rent prices is key, not just for renters but for homeowners too. It affects the economy on a bigger scale. Philly's median monthly rent is at $2,000, slightly higher than the median mortgage cost of $1,8692. This shows why it's critical to consider renting versus buying.
Rent trends in Philly do more than just affect how affordable homes are. They also change how people spend their money and live their lives. For example, if mortgage rates fell to 5%, buying a home could become about 10% more expensive than renting2.
Current Median Rent in Philadelphia
In July 2024, Philadelphia's median rent is $1,443. This shows a 1.1% increase from last month and a 0.6% rise from last year3. The rent prices vary a lot across neighborhoods and compared to nearby cities. This shows how the rental market in Philadelphia is diverse.
A studio in the 19107 ZIP costs about $1,265, but a 4-bedroom can go up to $3,5504. The median for all homes there is $2,1504. These differences show there's something for everyone, whether you're saving or splurging. Studios went up 6.45%, and 1-bedrooms saw an 8.73% increase. Two-bedrooms rose by 10.99%, and 3-bedrooms jumped 31.20%. But, 4-bedrooms dropped by 68.89%4.
Among the cities close by, Wilmington, DE, has the cheapest rent at $1,5504. King of Prussia, PA, is the priciest, with rent at $2,207 a month4. This shows why the location matters a lot in rent prices.
Around the 19107 area, 27 neighborhoods have rents averaging $1,973 a month4. Cobbs Creek is the least expensive at $1,350. University City tops the chart at $3,0044. These numbers help people looking to rent or invest get a full picture of Philly's rental scene.
To learn more about Philly's rental trends, check out RentHop's overview. It dives deeper into these figures4.
Rental Price Trends in 2024 in Philadelphia
Philadelphia's rental market will see big changes in 2024. Experts expect rental prices to go up by 3-4%. This is due to high demand and not enough homes5.
Monthly Rent Growth
In July 2024, the rent in Philadelphia increased by 1.1%6. This continues a trend of steady increases over recent months. It's important for investors and renters to keep up with these changes. For detailed insights, check out this blog.
Annual Rent Growth
Over the past year, rents in Philadelphia went up by 0.6%6. Even with this small increase, everyone involved needs to adjust their plans. From January to June 2024, rents increased by 4.3%, similar to rates in 20236. This ongoing demand suggests renters and investors should stay active in the market.
Cost of Living Compared to National Average in Philadelphia
Getting to know the cost of living in Philadelphia is key for making a good budget. This is especially true when you compare it to what is typical in the whole country. Things like housing and food tend to cost more in Philadelphia. This affects the city's cost of living score.
Goods & Services
In Philadelphia, the price for goods and services is a bit above the national average7. This slight increase affects daily spending and is crucial for budgeting. For instance, the cost of ground beef is up 1.3% more than the average7.
Groceries and Utilities
Groceries in Philadelphia cost about 9% more than what most Americans pay7. It's vital to watch this closely when figuring out your food budget. Also, utilities are 10% higher compared to the national figure7. In particular, electricity cost have gone up by 3.4% in just two months8. Plus, the general price for energy has increased a bit too8.
Comparison with National Rent Prices in Philadelphia
When we look at how Philadelphia's rental costs compare to the rest of the country, we see some benefits. A one-bedroom in Philadelphia costs about $1,499. This price is close to the national average9. For a two-bedroom, you'll pay around $1,750, which is about $100 cheaper than what most people pay across the country9. These differences show Philadelphia's rental market is competitive.
Recent stats from studies reveal the average rent in the U.S. is $1,372 as of August 202310. Philadelphia's prices are a bit higher, which means there's strong demand for living there compared to the whole country.
Compared to places like Hawaii and California, where rents are $2,418 and $1,958 per month respectively10, Philadelphia is much cheaper. This fact is key for those picking between cities to live in.
Philadelphia's rental scene is growing stronger. Even with slight rises in rent, it competes well with bigger cities like New York and Boston. For people wanting value and a lively city, Philadelphia is a great option.
Neighborhood Variations in Rent in Philadelphia
Rent prices in Philadelphia vary by neighborhood. The difference in cost depends on the area, amenities available, and how close it is to downtown. It's important to know about these variations when looking for the best place to live. Choices range from luxury homes to more affordable options.
Most Expensive Areas
People wanting high-end living prefer places like Center City. Here, rent for a 1-bedroom is about $2,098. A 2-bedroom goes for as much as $2,70211. Chestnut Hill is also pricey, with houses selling for around $601,250. Rent for a 1-bedroom there is about $2,033, and a 2-bedroom is $2,29611.
Logan Square has even higher rents. A 1-bedroom apartment costs $2,240. A 2-bedroom apartment averages $3,29011.
Most Affordable Areas
If you're saving money, consider Norristown. The rent for a 2-bedroom apartment is usually $1,29712. Brewerytown is another affordable area close to downtown. Here, a 1-bedroom costs $1,282, and a 2-bedroom is $1,65011.
In the 19122 zip code, Cobbs Creek is a great wallet-friendly option. On average, rent here is $1,350 a month13.
Factors Influencing Rent Prices in Philadelphia
Rent prices in Philadelphia are shaped by many things, from economic indicators to location features. By knowing these *rent price determinants*, we can better understand the *economic impact on housing*. We can also see how the city's location affects rent prices.
Economic Factors
The local economy's health greatly influences rent prices. Job market trends and how many people are moving to the area matter a lot. For example, almost half of Philadelphia's homes are rented. This high demand pushes up rent prices14. Plus, the city has added about 46,000 new places to live since 1990. This is to keep up with how many people need homes14.
Another important fact is that over half of Philly's renters spend a lot on rent. About 54% use more than 30% of their earnings for housing15. This shows that many people find it hard to afford living in the city. It really points out the *economic impact on housing*.
Geographical Factors
Location also affects how much rent costs. Being near things like stores, buses, and trains can make places more expensive. Center City has a lot of renters, about 23%, and it's pricier there14. For instance, rent in Center City averages $1,202 a month. This is more than what people pay in other parts of the city, which is about $84614. This shows how rents can change a lot within just one city.
In areas like North, West, and Southwest Philadelphia, more people struggle with high housing costs15. The big differences in rents show how both where you live and the economy affect housing prices. This makes figuring out rent prices in Philadelphia pretty complicated.
Rent Growth in Major Philadelphia Suburbs
In Greater Philadelphia, the suburbs have seen different rent trends recently. Exton has enjoyed moderate rent increases. Meanwhile, King of Prussia saw rents go down. These changes show how various factors impact rent in the suburbs.
Suburban Rent Statistics
In the Philly metro area, only 35% of renting households make the $77,900 needed for median rent, which is $1,948 a month16. This shows the financial hurdles many renters face in the suburbs. Compared to this, Philadelphia's larger apartment market dipped in demand last year but picked up again early 2023. It added roughly 3,500 rental units into the market17. By June 2023 end, Philadelphia's occupancy rate hit 94.4%, one of the highest among top US metros17.
Comparing City vs. Suburb Rent
City and suburb rents differ notably in Philadelphia. The city's median rent is $1,443, about 7.7% less than the metro area's median. This highlights the rent gap between city and suburb. With suburban apartments being built less and city developments increasing, rent costs differ more between them. As of June 2023, Metro Philadelphia's rent increase slowed to 2.3%, with an average rent of around $1,682/month17. For deeper insights, visit the Economy League of Greater Philadelphia website.
FAQ
What's the average rent in Philadelphia, PA?
As of July 2024, rent in Philadelphia averages at $1,443. This shows the city's varied housing market and its economic status.
How does the Philadelphia rental market compare to the national average?
Philly's rent is slightly higher than the US average, by 2.3%. It ranks as the 50th priciest major US city for renters. Living here costs about 3% more than elsewhere in the nation.
What are the current rental price trends in Philadelphia for 2024?
The monthly rent in Philly has grown by 1.1% in 2024. There's been an annual rise of 0.6%, similar to last year's trend.
How do Philadelphia's goods and services costs compare to the national average?
The price for goods and services in Philly is 1% above the national average. Overall, living in Philly is roughly 3% pricier than in other parts of the US.
Which neighborhoods in Philadelphia are the most expensive?
Exton is Philly's priciest spot, with a 2-bedroom apartment rent median of $2,478. Rent varies greatly across different neighborhoods.
Are there any more affordable areas for renting in Philadelphia?
Norristown is more budget-friendly, offering 2-bedroom homes at a median rent of $1,297. This points to the city's vast range of rent prices.
What factors influence rent prices in Philadelphia?
Various elements affect Philly's rent prices. These include the local economy, job market, population growth, and new developments. Things like location and access to services and transport also matter.
How do rents in Philadelphia's suburbs compare with those in the city?
Suburbs around Philly, like Exton and King of Prussia, show rent differences. City rent is 7.7% less than the median across the metro area. This highlights a clear cost gap between city and suburban living.
Source Links
- The Average Rent in Philadelphia | ApartmentGuide.com - https://www.apartmentguide.com/blog/average-rent-in-philadelphia/
- Philadelphia among 4 cities where buying is cheaper than renting: study - https://www.cbsnews.com/philadelphia/news/philadelphia-buying-home-cheaper-than-renting-redfin-study/
- Philly rent increases are finally chilling out, data show - https://www.inquirer.com/real-estate/home/philadelphia-rent-increase-montco-delco-bucks-county-chester-20230803.html
- Average Rent in 19107, Philadelphia, PA | 19107, Philadelphia, PA Rent Costs - https://www.renthop.com/average-rent-in/19107-philadelphia-pa
- Philadelphia Rental Market Trends and Predictions for 2024 - HubKey Property Management - https://hubkey.co/blog/philadelphia-rental-market-trends-and-predictions-for-2024/
- Average Rent in Philadelphia, PA & Rent Price Trends - https://www.apartmentlist.com/rent-report/pa/philadelphia
- Cost Of Living in Philadelphia, PA - https://www.areavibes.com/philadelphia-pa/cost-of-living/
- Consumer Price Index, Philadelphia-Camden-Wilmington – June 2024 - https://www.bls.gov/regions/mid-atlantic/news-release/consumerpriceindex_philadelphia.htm
- Monthly rents in Philly remain historically high despite slight decrease - https://whyy.org/articles/philadelphia-monthly-rents-historically-high/
- Average Rent By State - https://www.forbes.com/advisor/mortgages/average-rent-by-state/
- 21 Popular Philadelphia, PA Neighborhoods: Where to Live in Philadelphia in 2024 - https://www.redfin.com/blog/philadelphia-pa-neighborhoods/
- Rising Rents in Greater Philadelphia in 2022: An Update | Economy League of Greater Philadelphia - https://www.economyleague.org/resources/rising-rents-greater-philadelphia-2022-update
- Average Rent in 19122, Philadelphia, PA | 19122, Philadelphia, PA Rent Costs - https://www.renthop.com/average-rent-in/19122-philadelphia-pa
- PDF - https://www.phila.gov/media/20190521115942/Renting_In_Philadelephia.pdf
- The State of Housing Affordability in Philadelphia - https://www.pewtrusts.org/en/research-and-analysis/reports/2020/09/the-state-of-housing-affordability-in-philadelphia
- Philly-area renter households make $22,300 less than they need to afford a typical apartment for rent - https://www.inquirer.com/real-estate/housing/apartment-rent-philadelphia-income-afford-redfin-20240701.html
- CRE Report: Philadelphia, PA has the 7th Highest Occupancy Rate in the Nation - https://www.linkedin.com/pulse/cre-report-philadelphia-pa-has-7th-highest-occupancy
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