Market Report
Philadelphia Multifamily Market Report
1Q 2026
Robust Labor Market Stokes Leasing
During Broader National Hesitancy
"Hiring pulls demand to commercial centers. Greater Philadelphia’s annual employment growth rate ranked among the top 15 major metros last year. Even the somewhat softened pace in 2026 will be a tailwind to multifamily leasing. The healthcare sector has led the way in adding new positions in the metro, followed by professional and business services. This will again steer renter demand toward submarkets with hospitals and medical offices, such as University City-Southwest Philadelphia, where apartment vacancy fell about 100 basis points last year. It may also aid submarkets with low or improving traditional office vacancy, such as Norristown-Valley Forge. The multifamily availability measure there fell into the 3 percent range in 2025, declining alongside the local office metric. More generally, a sustained rental appetite and falling metrowide deliveries point toward rosy fundamentals in 2026.
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