2014 Was a Good Year for Philadelphia Apartments
A research report from Delta Associates shows that 2014 was a strong year for the apartment market in Philadelphia, according to Philadelphia Business Journal‘s Natalie Kostelni. Rents in Class A apartments rose by 3.7% to $2,128/month and vacancy was down.
That’s great news, right? Well, it all depends on if Millennials and Empty Nesters continue to flock into the city for apartments. Delta counts 4,014 units in the pipeline to be completed within the next three years, which could saturate the market and increase vacancy rates.
More from Philadelphia Business Journal:
However, if current trends remain, in which Millennials and Empty Nesters continue to move to urban areas, companies add jobs and delays younger folks buying a house, then the additional units have the potential to be absorbed without wreaking havoc on the Philadelphia market.
It’s especially helpful when these new developments, such as East Market (322 units in phase 1) or The Dalian on Fairmount (293 units), offer amenities like a MOM’s Organic Market or Whole Foods, sky deck lounges and integrated retail, restaurant and even health scene right into the property.
Back in May, Sandy Smith reported that the the rental market in the city was poised to take off–quoting Jerald M. Goodman, partner at Drinker Biddle & Reath LLP as saying that, “Multifamily is hot.” While the vacancy rates rose towards year-end 2014, it turns out that was indeed true. Let’s see if the trend continues into 2015.
• Philadelphia apartment market saw rents rise and vacancy drop last year [Philadelphia Business Journal]