Philadelphia Property Investment: Where To Buy

Philadelphia is a great city to invest in real estate. The city has a lot to offer, including an affordable housing market, attractive rental prices, and diverse neighbourhoods with unique perks. From restaurants and parks to museums and cultural activities, Philadelphia is full of life. The city's stable job market, diverse economy, and growing population create a consistent demand for housing.

With its rich cultural history and diverse neighbourhoods, Philadelphia is a hotspot for real estate investment in 2024. The city's economic landscape is backed by robust healthcare, finance, education, and technology sectors. The Philadelphia Metro's median sales price was $340,000 as of January 2024, an increase of 8.3% from the previous year.

There are many great neighbourhoods to choose from in Philadelphia, each with its unique characteristics and investment potential. Fishtown, Brewerytown, Olde Kensington, Port Richmond, and Chestnut Hill are among the top contenders for real estate investments. These areas have witnessed revitalization efforts, attracting a diverse range of residents, and contributing to property value appreciation.

For investors looking for potential growth, Philadelphia offers a variety of neighbourhoods to explore. From trendy Fishtown to luxurious Rittenhouse Square and the lively Northern Liberties, each neighbourhood has its own charm and investment opportunities.

Fishtown

The real estate market in Fishtown has been experiencing a boom, with home values nearly tripling since the Great Recession. Properties are in high demand, with many selling in bidding wars and the current sale-to-list ratio being exceptionally high. This demand has attracted the attention of developers, including those from outside Philadelphia, who are snapping up warehouses and vacant lots to meet the growing need for housing and commercial spaces.

The median age in Fishtown is 35, and the average individual income is $55,680. The neighbourhood has a mix of newcomers and legacy residents, creating a diverse community. With its unique charm, convenient transportation, and thriving cultural scene, Fishtown continues to be a sought-after destination for real estate investors.

Brewerytown

The neighbourhood has seen a lot of development activity in recent years. In March, the Philadelphia Housing Authority announced a partnership with community-based developers to renovate 53 vacant and distressed properties. This has made it a great opportunity for investors to buy turnkey multi-family rentals, with the potential for year-by-year value increases.

The average rental price in Brewerytown is currently $1,719, with the average sale price of homes at $305,489. The average sale price for properties in excellent, fully rehabbed condition is $384,572.

For investors looking for properties in need of small upgrades or full remodels, there are options ranging from 850 to 1,500 square feet, typically priced between $110,000 and $190,000. Traditional brick rowhouses and twin homes with updates and spacious front porches can offer up to 2,000 square feet, with prices ranging from $200,000 to about $550,000.

Newly built luxury condos with amenities like rooftop lounges, natural light, valet parking, and dog runs can offer upwards of 2,500 square feet and cost anywhere from $600,000 to $1 million.

With its mix of historic charm, modern conveniences, and proximity to Center City, Brewerytown is an excellent investment opportunity in Philadelphia.

Olde Kensington

The neighbourhood is nestled between Fishtown and Northern Liberties, and its property values have increased as a result of the revitalization. It is well-served by public transportation and is within walking distance of Northern Liberties, Frankford Avenue shops and restaurants, and parks.

The average household income in Olde Kensington is $127K, and homes typically spend 60-78 days on the market. The average home price is $449,500-551,228, with recent sales ranging from $265,000 to $949,999.

For example, a four-bedroom, four-bathroom home with a one-year builder's warranty and a 10-year tax abatement recently sold for $475,000. Another four-bedroom, 3.5-bathroom home with a roof deck and city views sold for $924,999. A smaller one-bedroom, one-bathroom condo with a private, gated parking spot sold for $257,800.

Port Richmond

For investors, Port Richmond presents an attractive opportunity. With easy access to commuter lines and major thoroughfares, the area is commuter-friendly and convenient for those working in and around the city. The average home value in Port Richmond is $192,304, with prices ranging from $40,000 to $700,000 for investment properties and renovated homes going for between $300,000 and $700,000. Rentals in the area currently average $1,440 per month, and the value of homes is steadily appreciating.

Chestnut Hill

The neighbourhood has a busy shopping district on Germantown Avenue, with local boutiques, restaurants, and cafes. Residents can also enjoy the nearby Morris Arboretum & Gardens and Wissahickon Valley Park.

Overall, Chestnut Hill is a desirable location for investors due to its high demand, stable property values, and attractive amenities.

Frequently asked questions