Philadelphia, Pennsylvania Housing Market

How much can you negotiate in Philadelphia?

Only 45 out of every 100 homes for sale have found a buyer. The other 55 are still waiting. Your offer may be the only one on the table. About 1 in 6 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Philadelphia home takes 52 days to find a buyer. Half of them take even longer. That is 10% faster than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 4,712 homes for sale in Philadelphia. That is 1.6 times the tightest month on record, but below the peak of 4,989. Supply is growing against last year.

What to do about it

• Start in 19121, 19107, and 19134. Those are the three softest ZIP codes in Philadelphia.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 19121 only 20 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Philadelphia?

Asking prices are 17.5% below their Oct 2020 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Philadelphia prices rose in only 69 of the last 108 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Philadelphia?

In Philadelphia, 49 out of every 100 households rent. That is nearly half. The renter share is growing. Five years ago it was 48 in 100. Philadelphia added about 44,000 renter households in five years. Renter households average 2.0 people. Singles and couples rent here. Two bedrooms beat four.

Households grew 13% in five years. The housing stock grew 9%. Demand is outrunning supply. 9.5% of homes sit empty. That is normal for a healthy market.

The median Philadelphia household earns $64,911 a year. Incomes here have grown 6.0% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 4.7 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. A tenant on the median income can pay about $1,623 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

That is the market, not your address. Run an address through the app to see its rent estimate and cash flow.

What numbers should you underwrite a Philadelphia deal with?

• Price growth to assume — -2.0%/yr. Philadelphia grew 3.6% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Philadelphia loses about 2.0% a year. That is the number to type in. Prices fell 5.6% over the last year. That is a timing signal, not a trend.
• Months of carrying cost — 2. A typical home takes 52 days to sell. Budget that long when you exit or refinance.
• Odds you cut your price to sell — 1 in 6. About 18% of homes on the Philadelphia market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $229/sqft. The average listing runs +31% above the median. Luxury homes skew it. Comp your own size class per sqft.
• Competition when you exit — +6%. That is how much the number of homes for sale grew in a year. Your resale will face a bigger crowd than today's comps did.
• Price-to-income ratio — 4.7×. A typical home costs 4.7 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. Incomes are rising faster than home prices. Affordability is improving.
• Tenant rent ceiling — $1,623/mo. 30% of the median household income of $64,911. Rents above this line shrink your tenant pool fast.

Is Philadelphia a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Philadelphia right now. 45 out of every 100 homes for sale have a buyer, 18% of sellers have cut their price, and a typical home takes 52 days to sell.

Are Philadelphia home prices going up or down?

Asking prices are 17.5% below their Oct 2020 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Philadelphia?

Assume -2.0% a year. Philadelphia grew 3.6% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Philadelphia loses about 2.0% a year. That is the number to type in. Prices fell 5.6% over the last year. That is a timing signal, not a trend.

How fast are homes selling in Philadelphia?

A typical Philadelphia home takes 52 days to find a buyer. Half of them take even longer. That is 10% faster than a year ago. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Philadelphia a renters' market or an owners' market?

In Philadelphia, 49 out of every 100 households rent. That is nearly half. The renter share is growing. Five years ago it was 48 in 100. 9.5% of homes sit empty. That is normal for a healthy market.

What rent can Philadelphia tenants afford?

A tenant on the median income can pay about $1,623 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Philadelphia household earns $64,911 a year.

Which Philadelphia ZIP code has the most negotiating room?

19121. Only 20 out of 100 homes there have a buyer. 27% of sellers there have cut their price, and a typical home takes 58 days to sell.