Philadelphia real estate market is currently on the up and up, making it a market worthy of investors’ consideration, writes Aly J. Yale for The Motley Fool.
The overall environment is decidedly business friendly. Philadelphia region is home to six million people. It has a strong economy with deep ties to the education, healthcare and food industries. Its numerous historical and cultural sites bring in a steady stream of tourists.
Among the major trends in the area currently is the rise of multifamily homes, which is outpacing forecasts and recording the highest numbers in permits since at least 2016. More real-estate improvements are evident as supply which — while still low — has been increasing. This trend represents a big step up from national averages. Prices are also on the rise, with home prices increasing by 14 percent to reach an average of $238,000 and rents going up by 2.5 percent to settle at $1,589.
There are, however, economic challenges to overcome. Unemployment statewide is trending downward but continues to be pesky. Regional demand is also soft.
While encouraging, the true test of economic improvement won’t truly be seen until 4Q2021 or later, when vaccination rates begin to beat back the advance of the COVID-19 pandemic.
Read the entire Philadelphia real estate market investing forecast in The Motley Fool.