Investing in real estate in Philadelphia can be very lucrative, yet many investors tend to overlook it. Since Philadelphia is one of the largest cities in the United States, as well as one of the most historical cities, they think that it’s time has come and gone, that there is not much money to be made by investing.
However, these misconceptions couldn’t be further from the truth. In fact, Philadelphia has taken a turn and is actually evolving and progressing at an incredible rate, creating the chance for investors to be a part of this move towards revival.
Anyone looking to make a huge financial move in real estate investment should have their sights set on the City of Brotherly Love, Philadelphia herself. There’s a lot to know about investing in real estate in Philadelphia, so let’s get started.
Facts About Philadelphia
As the largest city in Pennsylvania and the second largest city on the east coast, Philadelphia is home to more than one and a half million people. In fact, when including the numerous suburbs that surround the city, the population exceeds four million.
While most huge cities are seeing a decline in population, Philadelphia, which is located in the Delaware Valley, is steadily growing and has been for seven or more years.
Philadelphia Real Estate Market
The Philadelphia real estate market is one of the best places to invest in 2020. One of the main reasons is because while the US housing market is beginning to slow down, Philadelphia is one of only a handful of cities that is not only expected to avoid slow down, but is actually expected to grow.
Philadelphia is not necessarily a great city for flipping houses, but it is top-notch for pursuing buy and hold real estate investment property.
Prices of houses in Philadelphia continue to rise and yet remain affordable for most potential homebuyers. In fact, it is one of the only large cities with investment properties at a fairly affordable price.
One of the reasons for this is that there is such a large population and yet nearly half of that population lives in rental properties. With an abundance of affordable properties waiting to be purchased, and a high demand for rental properties, investing in real estate in Philadelphia is a great decision.
Another consideration for those looking to invest in real estate is the local economy. The good news is, the Philadelphia economy is good and consistent, with high job growth and top industries located in the city.
This provides ample aid in the local real estate market, ensuring that the Philadelphia housing market continues to boom.
The basic Philadelphia real estate market statistics show the incredible financial opportunity that exists in investment. With a median property price of $306,175, and the average income from renting out a property being $1,406, there is a 2% cash on cash return and an 18% price to rent ratio.
What these statistics show is that there is a high benefit to investing in a real estate property and renting it out. Long-term rentals can bring in a high rental income, quickly making the investment worthwhile.
It’s important to note that the majority of real estate available in Philadelphia are townhomes and multi-family homes. Both of these types of property make great investments as they are coveted rental properties and will typically bring in a high return on investment.