Jan 12, 2022 - Real Estate

Buying is cheaper than renting a home in Philadelphia

Cheaper to buy or rent?
Data: ATTOM; Map: Jared Whalen/Axios

It's cheaper to buy than rent in Philadelphia, according to a new report by real estate database company ATTOM.

Why it matters: Home prices continue to rise in the city, and the affordability gap is narrowing.

The big picture: In nearly 90% of the nation, home prices are rising faster than wages, Axios' Jennifer Kingson reports.

  • Owning a median-priced home is more affordable than the average rent for a three-bedroom property in 58% of the U.S., per ATTOM's analysis. .

The intrigue: Philadelphia shirks national trends in which renting typically makes more sense in big metropolitan areas, while homeownership wins out in the suburbs and rural areas.

  • Zillow estimates the typical home value in Philadelphia to be $228,079.

Meanwhile, it's more affordable to rent than buy in Philadelphia's surrounding counties: Bucks, Montgomery, Delaware and Chester.

Yes, but: Good luck trying to get a house.

What they're saying: "We're seeing bidding wars, and you're starting to see that even in neighborhoods that historically wouldn't see this kind of demand," said Carlos Masip, a real estate agent for Keller Williams Philly.

  • He said that although it's cheaper to own, it's becoming more difficult for the average person.

Maria Quattrone, who runs her own real estate agency in Philly, said now is a good time to try to buy because there are usually fewer people looking this time of year.

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