While the for-sale market experiences up and downs in a post-recession world, things are looking pretty good for the luxury rental market in Philadelphia. What are the factors determining this success?
Relatively cheap real estate, for one. Though the Inquirer’s Alan J. Heavens notes that “by Philadelphia standards, prices locally are recovering to pre-housing-downturn levels,” real estate investment professional Spencer Yablon tells Heavens that “by comparison to other markets, [Philadelphia] real estate is still cheap.”
Another fact is job growth, particularly in the areas of University City and the Navy Yard. This growth serves to attract developers who, as Yablon put it, get access to "an abundance of debt and equity capital looking for multifamily opportunities."
Center City has a slew of luxury rental buildings proposed and under construction -- like Carl Dranoff's South Star Lofts, a mid-rise rental building slated for Broad and South, among others.
• Phila. luxury rental market is booming [Inquirer]
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• Former Marquis apartment complex will get $50M renovation and new name [Philadelphia Business Journal]