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Philadelphia Boasts Nationally Low Apartment Vacancy,
Aided by Strong Suburban Demand
The impact of new supply is concentrated downtown. Net absorption in Philadelphia was strong in 2023 as more than 4,700 units were newly occupied. This carried into the first quarter of 2024. While deliveries reach a record high this year, placing upward pressure on vacancy by December, Philadelphia will still maintain one of the lowest rates in the country. Most of this year's construction pipeline is focused in and around downtown, isolating supply pressure to these areas. Vacancy in Center City, where inventory has increased more than 18 percent since 2019, has the highest rate among the metro's submarkets at 6.2 percent. Meanwhile, Bucks County saw stock increase by only 1.3 percent in the same span, and vacancy exited March 140 basis points below the overall metro mark.