For decades, homes in the region have been relatively inexpensive and Philadelphia enjoyed a reputation as an unusually affordable major city, writes Ben Seal for the Philadelphia Magazine.

However, that is no longer the case, as housing prices have skyrocketed recently due to the pandemic’s lasting impact, including rising interest rates, soaring construction costs, and a continuously shrinking inventory.

The median sale price for the Philadelphia metro area increased to $380,000 from $247,000 at the end of 2019. That figure is a more modest $268,000 within city limits, but goes up to a cool half million dollars in Bucks and Chester counties.

This has made homes unaffordable to many, especially first-time buyers.

There are ways to address the issue before it becomes an even bigger problem.

Mo Rushdy, managing partner at developer Riverwards Group, believes reinstating the full tax abatement with an affordability requirement would help balance the needs of developers and residents, making it easier to build more affordable homes.

Meanwhile, Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation, suggested increasing abatement to 20 years for low-income housing to make affordable development more viable for those building it.

“Developers will build anywhere they can make a profit,” he said.

Read more about Philadelphia region housing prices in the Philadelphia Magazine.