Up and Coming Philadelphia Neighborhoods Poised for Growth
Philadelphia is not often discussed in national media circles as one of the most promising cities to buy, renovate, and sell houses in and, when looking in from the outside, it’s easy to see why. Though employment across Philadelphia County has steadily grown in the last two years, both the county and the city itself maintain a higher unemployment rate than the national average at 5.7% and 5.2% respectively, according to the Bureau of Labor Statistics. Crime is also high, frequently also ranking higher than the national average and above other major metropolitan areas of the same size. And, the City of Brotherly Love rarely makes any news outlets’ top ten—or even top twenty—list of best places to live. So, at first glance, it appears that not only might it be difficult for existing residents to afford housing in Philadelphia, anyone who can afford the housing, simply may not want to. That doesn’t usually make for a housing market worth investing your money, or your time, on.
But, as it turns out, Philadelphia is rising in the ranks of comeback cities, like Detroit, as a place that deserves a second chance and, if you’re an investor, maybe another glance. After all, employment is up and crime is down overall. In addition, despite not making any ‘best places to live’ lists, people are buying homes in Philly—and, they are paying well for the privilege to do so. Home values have been on the rise during the last year, as have median home sales prices. Inventory, on the other hand, has started to diminish, likely due to increased demand. So, Philadelphia’s housing market has clearly been strengthening. And, many market analysts are expecting that home price growth to jump quite a bit more in 2019.
Of course, it’s helpful to keep in mind that not every neighborhood is created equal. Some areas, like hipster neighbors Northern Liberties and Fishtown, have been on everyone’s radar long enough to bump them from transitioning to pretty-well established neighborhoods. Others, like some of those listed below, seem to be just on the cusp of experiencing substantial growth in the coming year. So, if you’re a Philadelphia investor who’s in the market for opportunities that are most likely to yield potentially good returns, you might want to give these communities a look: