Philadelphia has one of the nation's hottest real estate markets
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Philadelphia is the fifth-hottest housing market of 2025, according to Zillow.
Why it matters: The city climbed six spots from last year's ranking because of its affordability and growing job market.
Yes, but: Inventory could be a problem. The Philly market's available housing stock is still 46% lower than it was pre-pandemic, Zillow senior economist Orphe Divounguy tells Axios.
By the numbers: The Philly housing inventory is up 5.5% from last year.
- Nationwide, inventory rose 17% on average in that period.
What they're saying: "Philadelphia's healthy labor market continues to support demand for homes in the area, and that's surpassing the pace at which the city has been able to build," Divounguy says.
- "Sellers and new construction simply have not been able to join the market fast enough and in large enough quantities to keep pace with the number of buyers in Philadelphia."
How it works: Zillow's annual ranking forecasts the most competitive housing markets for buyers. Markets at the top of the list are largely "starved for housing inventory," the real estate platform shares with Axios.
- These regions tend to be relatively affordable with strong job and wage growth.
Zoom out: Hartford, Connecticut, and Richmond, Virginia, are the rising stars to watch in 2025. Sellers there have the upper hand as homes fly off the market at record speed.
- Across most of the U.S., buyers and sellers are at somewhat of a stalemate, Divounguy says.
Meanwhile, San Francisco and Memphis are slipping. They fell 19 and 30 positions, respectively. In these markets, homes are already sitting on the market longer, and home values are expected to depreciate, according to Divounguy.
The bottom line: Affordability and inventory are the name of the game.