Home value and rents are both on the rise in Philadelpha, per a study by Zillow. The data also indicates the number of available homes on the market has fallen. The median rent in Philly in June was $1,614, up 3% from a year ago, while home values in the city rose by 2.4%. The new median home value in Philly is currently $233,000. Inventory levels have dropped by 2,791or 9.8%, as compared to a year ago. Curbed - Philadelphia reports:
Philly isn’t an outlier when it comes to rising housing costs. Median rents across the country increased by 3 percent over the last year to $1,483, and home values increased by 5.2 percent.
“As much as record numbers of new apartments led many to believe that rental markets might have become over saturated with new supply, the reality is that demographics and general economic health continue to keep the pressure on,” Skylar Olsen, Zillow’s director of economic research said in a statement on the study.
Meanwhile, the number of available homes on the market fell (albeit not as dramatically as in Philadelphia) by .8 percent. The decreasing number of homes on the market across the country has been a persistent problem over the past four months, according to the report, and Zillow anticipates it will continue.
They attribute the problem to several things including builders struggling with, “scarce land, expensive labor and volatile materials costs,” that led to a downturn in new construction. They also suggest surge in renting single-family homes might be to blame, especially when it comes to investors buying and keeping homes as rental properties.
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