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Suburban Philly is one of most competitive rental markets in U.S.

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The suburban Philadelphia area has one of the most competitive rental markets in the nation, and is even more competitive than the City of Philadelphia.

Suburban Philadelphia ranked 17th most competitive rental market. Reported by online rental marketplace RentCafeThe analysis considered occupancy rates, rental supply, number of competing tenants for each rental property, and rental renewal rates.

The Philadelphia area as a whole attracts out-of-town renters because of its location, relatively affordable prices, variety of jobs and schools, and status as a metropolitan area.

“People who move to Philadelphia know that they can get big city living for a fraction of the money in Philadelphia compared to other major U.S. cities,” said Center City-based brokerage. Chris Coulton, a real estate agent at the company BMB Living Inc. said. Philadelphia is easily accessible for those who need more space in the suburbs.

” read more: Philadelphia-area renters have fewer options than most of the country

Coulton said he responds to weekly calls from renters looking to move to the area from as far afield as California, Nebraska, Florida, North Carolina, and South Carolina. rice field. Last year he moved his 10 from Texas.

Suburban rental homes tend to be larger, and households have prioritized space during the pandemic. Older millennials are looking for more space as they start having families, and more young people are extending their rental terms for lifestyle choices and living. Rising purchasing costsSuburbs are also generally less densely packed than larger cities, making it harder to find rental properties and renters may face more competition.

Most clients who call Coulton looking for rental properties outside of Philadelphia want to live on the main line. However, some people ended up buying there instead of renting, he said, because rental prices are high and “often there are very few options.”

” read more: Points from one of the largest surveys of Philadelphia renters

The growing popularity of renting single-family homes is boosting demand for rentals in the suburbs, said Yardi Matrix, a business intelligence manager at Yardi Matrix, a real estate data company owned by Arizona-based Rent Cafe’s parent company. Doug Ressler said.

CENTURY 21 Advantage Gold Chief Executive Bill Lublin (CENTURY 21 Advantage Gold) is based in northeast Philadelphia and works throughout the region, so convenience, accessibility and affordability are We support the choice of residence in the area. Where renters work, whether they can work from home, whether they have school-age children, and lifestyle all affect demand.

Lublin, president of property management firm Lublin Corporation Realtors, said he’s seeing “a huge amount of demand” for rentals across Philadelphia and Color counties in Pennsylvania and New Jersey. He said it helped boost rents significantly.

A Lublin property management company manages tenements across the city, and “they are all renting out very quickly,” he said.

“We have a huge millennial generation. Some are driving the buy market, but others are not ready or unsure. So they are driving the rental market, not the buy market. towing,” he said.

” read more: Tenants face a bidding war in a competitive market (May 2022)

Vacant rental properties in suburban Philadelphia averaged 42 days of occupancy in the first four months of 2022, according to RentCafe’s analysis of over 50 market-price properties. And 14 renters competed for each rental.

In Miami-Dade County, the nation’s most competitive rental market, vacancies were filled in an average of 27 days, with 31 renters competing for each room. Harrisburg ranked as his second most competitive rental market in the country. The city of Philadelphia did not make the list of the top 20 markets.

Rent Scene, the rental arm of BMB Living that connects tenants with rental property owners, is seeing vacant rental units in Philadelphia fill in about 30 days, Coulton said. Also, tenants generally aren’t facing an “application war,” he said.

After the summer ends, renters are expected to see fewer rentals available due to the normal seasonal slowdown in rental activity, Coulton said. I expect to.

Nationwide, the rent gap between urban and suburban areas has narrowed during the pandemic as remote work has become more common. Realtor.com Analysis of 50 National Metropolitan AreasThe price advantage of renting in the suburbs dropped from $175 to $107 from July 2019 to July 2022.

Median urban rent in the metropolitan area, defined by Realtor.com as the cities of Philadelphia and Wilmington, will drop below median rent in the suburban portion of the region for the first time in 2021.

In July 2019, the median rent in suburban areas was $1,438, compared to $1,715 in urban areas. This July, his median July rent in Philadelphia and Wilmington was $1,750, up 6% from last year. Suburban rent is $1,925, up 10% from last year.

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