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Market Report

Philadelphia Multifamily Market Report

3Q 2023

Resilient Labor Market Aiding Renter
Demand Amid Recent Economic Headwinds

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.
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