Philadelphia Apartment Market Scorching Hot
Al Heavens of the Philadelphia Inquirer wrote an article detailing the hot Philadelphia rental market. The housing downturn, high unemployment, the debt ceiling crisis, and the possibility of further price declines have compelled some potential buyers into leasing in spite of historic interest rate lows. According to the article the supply of Philadelphia apartments falls far short of the demand given the housing market. Here are some interesting numbers included in the article:
- In the first quarter of 2011, the region’s apartment vacancy rate was 5%, according to Marcus & Millichap, when only 12 months earlier it was 6.3%.
- Estimated vacancy in Center City by real estate experts in 1.8%
- 86 percent of Center City adults up to age 34 are renters, said Paul Levy, executive director of the Center City District.
- Many apartment buildings were converted to condos during the housing boom, cutting into the supply. Some rental projects are in the pipeline, but they won’t be ready for quite some time.
In our experience this article hits the nail on the head. One of my rental agents told me last week that properties were renting out in the time between her making the appointment in the morning and showing it to the potential renter later that same day. With all of the economic turmoil nationally and abroad reluctance to purchase is certainly understandable however the days of the historically low interest rates may quickly be coming to an end. My advice – if you are not worried about losing your job, purchase a property now before rates are in the mid 6’s.
To search Philadelphia Real Estate listings for condos, homes and apartments click here.
Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
[email protected]
www.CenterCityTeam.com
