Phildelphia Multifamily Market Report
Multifamily Landscape Displays Resilience as New Supply Complicates Urban Core Outlook This Year
Market demonstrates relative stability through health crisis. Philadelphia apartments generally performed well in 2020, positioning the metro’s multifamily sector to advance even further this year as the broader economy improves. In contrast to most other major East Coast markets, Philadelphia recorded both tightening vacancy and rising effective rents last year. This was true at both an aggregate level and across multiple submarkets, even as the health crisis and related lockdowns closed businesses and cut payrolls. While total employment shrank 7.2 percent in 2020, the drop was less severe than in nearby New York City, Boston or Northern New Jersey. As the vaccination process continues, enabling more people to return to workplaces, the added consumer presence will drive hiring in the much-maligned leisure and hospitality sector, aiding rental demand.