Developers plan to add 2,000 new rental apartments to the Philadelphia market as they seek to meet rising demand. Economic growth has benefited Philadelphia, increasing demand for housing as 2013 is expected to add jobs to Philly’s economy and draw the workers necessary to fill those jobs.
While some call the economic recovery in Philadelphia “modest” so far, increasingly positive statistics about our economy continue to be released. Many hope these indicators are signs of a real estate recovery in the winds for 2013 and 2014, and if apartment inventory and rental trends are any indicator, this appears to be the case.
Market Indicators Suggesting Philadelphia Housing Recovery
Philadelphia property developers plan to add nearly twice as many apartment rental units to the housing market 2013 as they added in 2012. Rittenhouse Square and Point Breeze areas continues to be a neighborhood of increasing luxury apartment development and inventory. Meanwhile, regional vacancy rates are expected to decline 4.8 percent, nearly half a percentage point lower than they declined in 2012, causing the average effective rents rate to rise 2.1 percent this year.
Philly’s economy continues to grow, even if at a “modest” pace, adding an expected 36,800 jobs this year, and those workers will need somewhere to live. This influx of demand has many developers rushing to provide the supply of housing necessary to meet the demands of Philly’s recovery.
Apartment Demand Possible Indicator of Property Values Rise
These same market indicators have many wondering if now might be a good time to invest in Philadelphia real estate. Certainly developers are rushing to acquire properties capable of being developed to meet increased housing demand in the city, but those interested in buying a house in Philadelphia are watching the “modest” market recovery with some trepidation.
If the market indicators are a sign of the times, then Philadelphia’s economy is on the gradual upslope that could make now an ideal time to buy property in Philadelphia. Many potential buyers are watching and waiting to see if these signs mark a trend in the hopes of buying at just the right time. However, wait too long and that dream house in Philadelphia may well cost much more as property values rise with increasing demand.