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  • Writer's pictureNice Guy Realty

Why Buy Philadelphia Rentals?

Updated: Mar 9, 2023

Strong Rental Market: Philadelphia has a strong rental market with a high demand for quality rental properties. The city has a large population of renters, including students, young professionals, and families, which creates a consistent demand for rental properties.

  1. Affordability: Compared to other major cities on the East Coast, such as New York and Boston, Philadelphia offers relatively affordable real estate prices. This makes it easier for investors to purchase properties and potentially earn a higher return on investment.

  2. Good ROI: Due to the combination of strong rental demand and relatively low purchase prices, Philadelphia can offer investors a good return on investment. The average sale price of a home in Philadelphia, Pennsylvania, as of February 2023 is $281,000. The median rent for a 1-bedroom apartment in Philadelphia is currently around $1,400. See chart below to compare against similar major cities.

  3. Stable Economy: Philadelphia has a diverse economy that is not heavily reliant on any one industry, which means that it is more likely to remain stable during economic downturns. This stability can help ensure that rental income remains steady.

  4. Growing Population: Philadelphia's population has been growing in recent years, which means that the demand for rental properties is likely to increase as well.

  5. Comparison to other major cities: Below are the median home sale prices vs rents for major U.S. costal cities as of February 2023.

Median Sale Price Median 1-Bedroom Rent

  • New York City, NY: $756,000 $3,060 per month

  • Los Angeles, CA: $992,000 $2,350 per month

  • Miami, FL: $441,000 $1,750 per month

  • Atlanta, GA: $318,000 $1,499 per month

  • Boston, MA: $728,000 $2,450 per month

  • Seattle, WA: $843,000 $1,995 per month

  • Philadelphia, PA: $281,000 $1,400 per month

On average, Philadelphia commands a higher rent-to-purchase-price ratio

***It's important to note that these prices are averages, and can vary depending on factors such as the specific neighborhood or suburb, the size and condition of the property, and the current state of the local real estate market.

In Summary: Philadelphia can be a good place to invest in rental properties due to its strong rental market, affordability, potential for good ROI, stable economy, and growing population. However, as with any real estate investment, it's important to do your research and consult with professionals before making a decision. Nice Guy Realty is here to help!

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