The State of the Rental Market in 2021 | Mike McNelis
Mike McNelis is a seasoned real estate professional who has been in the industry for eight years and is sought-after for his rental market knowledge. Below are a few positive observations about the state of the rental market and the overall real estate industry in Philly from Mike’s perspective.
Mike says one of the beautiful things about the Philadelphia market on the heels of the Pandemic is that we didn’t have as many highs and lows as other major cities. We’ve been fortunate to have a pretty stable market as property value is comparatively lower and more affordable than other nearby cities.
While there is currently a bit of oversupply of rentals in the city, there is still a strong demand for them. Amazingly, PhillyLiving had 2,500 rental inquiries in the month of April. PhillyLiving’s per unit average rental fee is about $1,400 a month, which is also Philadelphia’s average. Though we had a small decline in the winter of 2020, rental rates are back on the growth track and that’s also a very positive thing for the state of the rental market.
We’ve all heard about the lack of inventory in terms of homes for sale. The good news is, there is still a huge boom in construction despite many building permits being put on hold during the Pandemic. The construction boom definitely protects the market in Philadelphia, even though it doesn’t quite make up for the lack of inventory.
“I believe this is a golden age of development unlike anything the city has ever experienced,” says Mike McNelis. “We should be grateful that steady growth is still happening.”
While many Philadelphia real estate teams have referred their rental business elsewhere, PhillyLiving is proud to be one of the industry leaders in helping renters to find homes. We love our Philadelphia renters and we also anticipated a demand for our LeaseUp services in 2021. If you’re a Landlord in need of lease up or property management services, contact Mike McNelis at MikeM@phillyliving.com or 856-904-4402.