Philadelphia Multifamily Market Report

Recent population growth uplifting multifamily. Following a stretch of retreating renter demand in 2022, the last two years observed mounting demographic gains that culminated in record- breaking net absorption during the 12-month period ended this March. Since the first quarter of 2023, Philadelphia has added roughly 80,000 new residents and 38,000 new households. This population growth was aided in part by the creation of over 60,000 new positions in the metro’s prominent education and health services sectors. As a result, vacancy dropped to a nine-quarter low in March, led by decreases of 150 to 170 basis points to sub-3 percent vacancy levels in Lower Camden County and Newark, Delaware. Tighter metrowide availability in turn bolsters rent growth prospects.