Aug 1, 2022 - Real Estate

Philly newcomers have housing budgets 40% bigger than locals

Data: Redfin; Chart: Baidi Wang/Axios
Data: Redfin; Chart: Baidi Wang/Axios

Folks from outside Philly are coming to town armed with home buying budgets 40% bigger than locals.

Why it matters: That gap topped a Redfin analysis of out-of-towners' purchasing power, highlighting how Philly is a desirable option along the Acela Corridor in the era of increased remote work.

State of play: Redfin says most people are coming from just the places you'd expect: N.Y.C., D.C. and L.A.

  • That's backed up by other data sources, too. Philly has been steadily peeling away New Yorkers over the last year, according to an Inquirer look at cell-phone location data.

What they're saying: "Full-time remote workers — and some people who commute the 90 minutes to New York a few days a week — realize they can get more for their money here, while still reaping the benefits of a big-city lifestyle," said local Redfin agent Trey Dodge in the company's analysis.

By the numbers: Philly home prices even stayed attractive on a national scale amid the pandemic's eye-watering price jump, kicking this trend into higher gear.

  • Prices here are up 20% from the start of COVID — compared to 26% in New York and 38% across the U.S.
  • The median home price in Philly in June ($300,000) was less than half of New York's ($705,000).

The big picture: Investors are noticing this trend, too. They gobbled up 15% of homes in our metro in 2021, targeting gentrifying areas and long underinvested neighborhoods with majority residents of color.

The bottom line: For people wanting to buy a house in a big city, there are few better options than Philly right now — but that doesn't always work out well for those who already live here.

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