Philadelphia one-bedroom rentals are cheaper, but prices up regionally
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A "boom in supply" is giving Philadelphia renters some relief, but those looking to rent in other major cities in the region aren't so lucky, the author of Zumper's latest report says.
The big picture: Philadelphia welcomed a surge of new apartment units in 2024, with more than 13,000 units projected to be delivered last year, per a RealPage analysis.
- Last month, one-bedroom rental prices dropped slightly from the same time in 2023, the apartment rental site's report shows.
- Many Philly landlords are offering move-in specials, waiving application fees and reducing deposits to attract renters, Zumper's Crystal Chen tells Axios.
At the same time, rental prices are jumping in parts of nearby New Jersey and Delaware, and the lack of inventory is driving up competition.
By the numbers: Philly's median one-bedroom rental went for $1,520 in December, down 1.3% from the same period in December 2023, per Zumper data. Prices are up nearly 2% for two-bedroom apartments.
- That's above the statewide median price ($1,262 for a one-bed, as of last month).
Meanwhile, Allentown and Reading saw some of the largest year-over-year rental price growth in Pennsylvania.
- Allentown's median one-bed rental price ($1,360) was up more than 6%. but was among the region's cheapest rents. Reading one-bedrooms went for about $950 a month, up 5.6% from the previous year.
Zoom out: Prices for one-bedroom rentals in Trenton, New Jersey, where there's limited space for construction, were up nearly 27% in December from the same month in 2023.
- Princeton, the most expensive city in the region for renters, has one- and two-bedroom rentals fetching between $2,800 and $3,300. That's down about 4% and 11%, respectively, from 2023.
- Wilmington, Delaware, saw a nearly 8% year-over-year rise for one-bedroom rentals, per the report.
What we're watching: Philadelphia's rental prices are expected to tick up in the spring and summer, Chen says.
Yes, but: There shouldn't be "crazy spikes in prices this year" because there's "still more supply expected to come online in this market."