Philadelphia

PAPhiladelphia-Camden-Wilmington MSA

Real Estate Market Analysis

Q3 2025 Report
$250,000 (citywide median); $292,873 (median list price, June 2025)
Median Home Price
~1.6 million (city), ~6.2 million (metro area)
Population
$56,000 (city); $75,000 (metro area, 2024 est.)
Median Income
Philadelphia School District: 4/10 (GreatSchools, varies by neighborhood)
School District Rating

Market Overview

Property Values

$250,000 (citywide median); $292,873 (median list price, June 2025)
Median Home Price
$221 (June 2025)
Price per Sq Ft
+3.4% to +3.9% YoY (2024-2025)
YoY Change

Market Performance

Days on Market31 days to pending (Feb 2025)
Market TypeSeller's market, but decelerating
Months of SupplyInventory up 36.5% MoM to 5,662 homes (June 2025), but still 46% below pre-pandemic levels

Sales Activity

Sales VolumeSales volume down from post-pandemic peak; 4,584 homes for sale (Feb 2025)
Metro AreaPhiladelphia-Camden-Wilmington MSA
Population~1.6 million (city), ~6.2 million (metro area)

Economic Indicators

Employment & Growth

Unemployment Rate~4.2% (Philadelphia metro, early 2025 estimate)
Job Growth Rate~1.5% YoY (2024-2025, metro area)
Median Household Income$56,000 (city); $75,000 (metro area, 2024 est.)

Major Employers

  • Comcast
  • University of Pennsylvania/UPHS
  • Jefferson Health
  • Children’s Hospital of Philadelphia
  • Temple University
  • Independence Blue Cross

Demographics

~1.6 million (city), ~6.2 million (metro area)
Population
34.6 years
Median Age
+0.2% YoY (city); stable, slow growth
Population Growth
32% bachelor’s degree or higher (citywide)
Education Level

Family Composition

38% family households; 62% non-family/individuals

Key Industries

Healthcare & Life SciencesEducationFinance & InsuranceTechnologyLogistics & Transportation

Education

School District

Philadelphia School District: 4/10 (GreatSchools, varies by neighborhood)
District Rating

Top Schools

  • Masterman School
  • Central High School
  • Science Leadership Academy

Higher Education

  • University of Pennsylvania
  • Temple University
  • Drexel University
  • Thomas Jefferson University

Infrastructure & Development

Major Projects

  • Schuylkill Yards (University City)
  • Navy Yard redevelopment
  • 76ers Center City arena proposal

Transportation

  • SEPTA trolley modernization
  • Amtrak 30th Street Station District Plan

Planned Developments

  • Mixed-use projects in West Philadelphia, Port Richmond, South Kensington

Lifestyle & Amenities

Recreation

  • Fairmount Park
  • Schuylkill River Trail
  • Spruce Street Harbor Park

Dining & Entertainment

  • Reading Terminal Market
  • Fishtown nightlife
  • Rittenhouse Square restaurants

Cultural Attractions

  • Philadelphia Museum of Art
  • Kimmel Center
  • Historic Old City

Investment Analysis

Investment Opportunities

  • Workforce housing in revitalizing neighborhoods
  • Value-add multifamily properties
  • Short-term rental demand near universities and hospitals

Growth Outlook

Moderate appreciation (2.5%-4.5% forecast for 2025) with pockets of higher growth in West Philadelphia, Port Richmond, South Kensington

Market Risks

  • Affordability constraints
  • Persistent inventory shortages
  • Competition from emerging Sunbelt markets

Rental Market

Strong demand, especially for affordable and student housing

Marketing Intelligence

Target Demographics

  • Millennials and Gen Z first-time buyers
  • Young professionals
  • Investors seeking cash flow

Marketing Channels

  • Zillow/Realtor.com
  • Social media (Instagram, Facebook)
  • Local real estate events

Pricing Strategies

Price at or just below recent comps to drive multiple offers in affordable segments

Common Objections & Response Strategies

Objection: Homes are too expensive/affordability issues

Response Strategy:

Highlight lower cost neighborhoods and down payment assistance programs

Objection: High interest rates make buying less attractive

Response Strategy:

Showcase adjustable-rate or buydown mortgage options and long-term appreciation potential

Objection: Concerns about neighborhood safety

Response Strategy:

Provide recent crime data, highlight community initiatives, and focus on up-and-coming areas

Professional Recommendations

1

Educate buyers on down payment and mortgage options

2

Leverage digital marketing and virtual tours

3

Focus on neighborhoods with infrastructure investment

4

Advise sellers to price competitively and stage homes

5

Highlight rental demand and cash flow for investors

Competitive Analysis

Comparable Markets

  • Baltimore, MD
  • Cleveland, OH
  • Pittsburgh, PA

Market Positioning

Affordable alternative to Northeast corridor cities with stable rental demand

Competitive Advantages

  • Lower entry price point than NYC/DC/Boston
  • Strong healthcare and education sectors
  • Diverse housing stock

Price Comparison

Median home price significantly below national average and major East Coast metros

Investment Metrics

5.5% - 7% (multifamily, 2025)
Cap Rates
5% - 6.5% gross yield (citywide avg.)
Rental Yields
~13-15 (citywide, 2025)
Price-to-Rent
Positive cash flow possible in value-add and workforce housing segments
Cash Flow
2.5% - 4.5% projected for 2025
Appreciation

Buyer Journey Insights

First-Time Buyers

Challenged by affordability and rates; seek down payment assistance and FHA/VA options

Move-Up Buyers

Motivated by growing families, but cautious due to limited inventory and higher rates

Downsizers

Attracted to condos/townhomes in walkable neighborhoods; value low maintenance

Investors

Focus on cash flow, multifamily, and student housing; seek value-add opportunities

Relocators

Drawn by job opportunities, lower cost of living vs. NYC/DC, and vibrant urban amenities

This city analysis was generated using comprehensive market data and AI intelligence.

Market conditions change rapidly - consult with local real estate professionals for the most current information.

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