Philadelphia Multifamily Market Report
One Year After Health Crisis Onset, Market Posts Rapid Rent Growth, Historically Low Vacancy
Resiliency transitions to near-record growth. Despite the health crisis, Philadelphia apartments performed well last year. After a brief updraft, marketwide vacancy ended 2020 down 20 basis points, while rents climbed consistently each quarter. Multifamily fundamentals have been improving more rapidly this year. As of June, vacancy had already fallen below the pre-health crisis level, while the average effective rent is ascending by one of the fastest clips in 20 years. These gains are being driven primarily by suburban neighborhoods, where many households relocated during lockdowns. This is especially true of North Montgomery County, where rents are up over 7 percent annually. Rates are also climbing quickly in New Jersey’s Gloucester and lower Camden counties, driven by vacancy under 2 percent. These dynamics are likely to hold at least through year-end.