Philadelphia’s real estate market is now the fifth-hottest nationwide, according to recently released Zillow’s list of 10 Hottest Real Estate Markets in the U.S. for 2025, writes Sandy Smith for Philadelphia Magazine.
This represents a significant improvement over last year when Philadelphia was No. 11 on the real estate site’s annual forecast of how the nation’s biggest real estate markets will perform in the coming year.
Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation, also believes the local real estate market will be hot in 2025 even though it is slowly cooling down.
“It’s returning to a more balanced market,” said Gillen. “We’re not there yet, and I don’t think we’re going to hit it in 2025, but we’re definitely trending towards it, and that’s a good thing.”
Philadelphia’s proximity to New York has fueled its hot real estate market. While lower and moderate-income Philadelphians struggle with rising prices, middle- and upper-income New Yorkers view them as bargains, especially Center City and Bucks County.
“The upscale houses, the converted barns, the stuff you see in Architectural Digest – that’s New York money” scooping them up, said Gillen.
Read more about Philadelphia’s hot real estate market in Philadelphia Magazine.
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