Philadelphia Multifamily Market
Report

Affordability pressures impact demand dynamics. After falling 50 basis points year-over-year to 2.9 percent in March, Philadelphia’s Class C vacancy ranked as the fifth tightest among major markets. Meanwhile, Class B vacancy declined 10 basis points to 3.9 percent, while Class A vacancy rose 30 basis points to 5.4 percent. These trends highlight a slight shift in demand away from the higher end of the market amid escalating affordability pressures. The average effective rent in Philadelphia has grown at the fastest rate among major East Coast markets over the past three years. During the same span, local median household income growth trailed the U.S. pace, narrowing the ratio of average effective rent to median household income by over 15 percent.