Philadelphia Multifamily Market Report

Vacancy remains comparatively tight. Entering July, vacancy was at 4.3 percent. Although this figure is roughly 260 basis points above the all-time low achieved in early 2022, it still ranks as the ninth-lowest rate among all major U.S. metros. The recent rise in vacancy can be attributed to headwinds like lower personal savings and lingering concerns of a recession that slowed leasing activity. However, the 1,320 units that were taken off the market on a net basis from April to June of this year is a welcome sign, as the metro posted negative net absorption in each of the prior four quarters. The strength of the local labor market should help provide a lift to renter demand during a period of historic multifamily development. Through the first half of 2023, the metro ranked third in the nation for employment growth, with the addition of 46,300 jobs.