Philadelphia Real Estate Investing
Philadelphia has several key aspects that make it an ideal city for real estate investing.
Below are three of the most commonly cited reasons, but a conversation with any of the InvestPhilly professionals will highlight several more that will show you why Philadelphia is one of the fastest growing cities in the country.
Square Footage for $300,000
As a cosmopolitan center, Philadelphia is one of the most surprisingly livable and affordable cities in the country.
As of December 2016, $300,000 buys on average 2,372 sqft of space. Compared to 952 sqft in Miami and 741 sqft in Seattle.(Source).
Current and newly moved residents appreciate the value of living in Philadelphia. In turn, well placed investors are able to draw on a larger pool of available tenants.
Philadelphia had the second largest rents increase in 2016 at 4.2%.
It was surpassed only by Columbus, GA at 5.5%, and was categorically higher than the national average of 0.67%.(Source)
New tenants in luxury apartments were a major part of that increase; effectively signaling that there is value to be created by the right kind of investor.
Month-to-Month Rent Increases
New Housing Construction by County
Philadelphia's investment community benefits from generous tax abatements- which waive taxes for property improvements- and allow investors to retain more of their proceeds.
As a result, since 2000, Philadelphia county has seen an increase in new housing construction of 376%, compared to 6% in Chester county, the next closest suburban county,(Source)