Center City saw a record amount of housing production in 2024, but that pace is expected to drop considerably this year, writes Paul Schwedelson for the Philadelphia Business Journal.
A number of developers began angling to receive permits before the 10-year tax abatement and low interest rates were scaled back by the end of 2021.
As a result, a large portion of the 3,811 new housing units that were ultimately constructed in Philadelphia last year were able to get constructed.
With those factors no longer prevalent, new construction throughout Center City has slowed. As a result, around 1,250 new units are expected to be completed in 2025. This represents only about a third of the units from last year. It would also be the lowest since 2020.
The slower rate can have bring about a positive outlook.
“This opportunity allows for demand to catch up with supply,” said Lauren Smith, Center City District manager of economic development.
U.S. Census Bureau data found that the increase in housing units in Greater Center City has matched the increase in population in the area.
Read more about how much housing units has increased in Center City and what this year’s outlook is in The Philadelphia Inquirer.
_____
Editor’s Note: This post was originally published on PHILADELPHIA Today in March 2025.
