Philadelphia’s Real Estate Investment Guide

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.
 
Philadelphia’s Economy
 
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.
 
Investment Statistics
 
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.
 
 

Top Places to Invest In Philadelphia

 
There are a number of neighborhoods in Philadelphia, some of which make up incredible investment opportunities, while others are not quite as desirable. After deciding to invest in Philadelphia real estate, it’s important to do the research and determine the best places to search.

Cobbs Creek

 
With a median home price of $139,895 and an average rental income of $1,145, Cobbs Creek provides an incredible investment opportunity.

Olney

 
Another top neighborhood to purchase real estate is Olney. The median home price is $131,771 and the average rental income is $1,347, which means there’s a 6% cash on cash return.

Tacony

 
In Tacony, investors will receive a 3% cash on cash return due to a median property price of $152,401 and an average rental income of $1,102.

West Oak Lane

 

West Oak Lane offers a median property price of $146,101 and an average rental income of $1,071.

West Passyunk

 
The West Passyunk neighborhood is not to be overlooked, with a median property price of $237,672 and an average rental income of $1,252.
Why Investing in Philadelphia will benefit you
 
Investing in real estate in Philadelphia is a great decision. With jobs on the rise and families moving into great neighborhoods, as well as half of the population choosing to rent instead of buy, the opportunity for making an investment that provides a high ROI is huge.
 
The real estate market around the country is slowing down, but in Philadelphia, investing in real estate is one of the best business moves one can make. Don’t miss this opportunity.