Average Price Per House in Philadelphia – A 10-Year Journey
One of my cherished cities, Philadelphia, has experienced significant shifts in the housing market during the last decade. In all these years of buying houses in Philadelphia, we have realized that the average price per house has been consistently affordable. One of our brokers advises, “It doesn’t matter if you’re selling, buying, or moving to Philadelphia. This city has a home for everyone”.
From a more technical perspective, the average price per house in Philadelphia represents:
- Economic shifts.
- Demographic trends.
- Urban development.
Jon calls these three categories “the trifecta of Philadelphia’s residential real estate market”.
Overview of the Last Decade
What factors contributed to this growth, Alex?
Well, there are several aspects associated with the growth of the average home price in Philadelphia. Each factor has had some impact on the overall market.
- Economic recovery and urban revitalization attracted new residents.
- Millennials and remote workers sought more affordable options in comparison to NYC and Boston.
- Philadelphia has had historically low mortgage rates.
- Investments in neighborhoods like Fishtown and University City positively impacted property values.
Breakdown of the Average Price Per House
If we were to look at a breakdown of the last decade, we would identify:
- Steady growth from 2015-2018, driven by economic revitalization.
- Accelerated increase during 2019-2021 (pandemic) as buyers sought more space.
- Slower growth from 2022 to the present due to consistently high interest rates.
| Year | Average Price ($) |
| 2015 | 155,000 |
| 2016 | 162,000 |
| 2017 | 170,000 |
| 2018 | 185,000 |
| 2019 | 195,000 |
| 2020 | 210,000 |
| 2021 | 235,000 |
| 2022 | 260,000 |
| 2023 | 275,000 |
| 2024 | 290,000 |
| 2025 | 300,000 |
Neighborhood-Level or Block-Level Changes
Jon says that “As a kid who’s grown up in the Philly fabric, I am amazed at the revitalization of these pockets.”
- The old industrial zones (Fishtown & Northern Liberties) have transformed into trendy hubs. The average price per house has almost doubled in the last decade.
- South Philadelphia witnessed moderate growth with families seeking affordable homes.
- West Philadelphia underwent significant gentrification in several pockets that raised prices and popularity.
A setback to this growth is that the neighborhoods with limited development saw higher crime rates and slow appreciation of property values.
What Factors Drove the Property Changes?
Jon credits the following factors as responsible for the changes to the property prices in Philadelphia.
- The Federal Reserve’s cuts to the interest rates during the pandemic made borrowing cheaper.
- Increased flexibility with work allowed buyers to choose space over proximity to the offices.
- Property flipping increased competition. We can strongly vouch for this factor as we witnessed it firsthand.
These factors were “out there” when the housing market was being shaped. There may have been additional microeconomic factors that have also impacted these trends.
Impact on Affordability
This is how Jon explains this. “It is common knowledge that property appreciation benefits homeowners, but it poses challenges for first-time buyers and renters.” In 2015, a median-income household could comfortably afford a home in almost the whole of Philadelphia.
Future Outlook
Philadelphia remains more affordable than New York City or Washington, D.C. Looking ahead, Philly’s housing market faces prospects in the form of:
- Rising interest rates may slow price growth.
- Continued development that could sustain demand.
- Affordable housing programs.
Conclusion
I would conclude by saying that “The average price per house in Philadelphia is not what it was 10 years ago. The housing market is more competitive and aggressive and reflects the trends brought forth by revitalization and urbanization.”