The average rent in Philadelphia for the entire metro area is $1,556. But in the city it's only about $1,350.
You may have been told that renting in Philadelphia, Pennsylvania, is expensive, but just how expensive are we talking about? Here are some of the top questions and answers on how much you should expect to pay when you move.
What’s the average rent, and where are the best places to rent in Philadelphia?
The average rent in Philadelphia is around $1,556.
Unlike with most major cities, the city itself actually has a cheaper average rent, at $1,350 per month.
It’s often more affordable to rent within the city, though a few neighborhoods have much higher average rent. In Philadelphia, the central districts cost the most money, including:
- University City ($1,770)
- Center City West ($1,680)
- Southwest Center City ($1,610)
- Logan Square ($1,850).
Nearby neighborhoods like North Philadelphia West ($680) and Spruce Hill ($950) are considerably cheaper. This wide variance between neighborhoods makes it hard to predict what sorts of prices you’ll pay when renting in Philadelphia; what may be the price of a small loft in one area may be a similar price to renting a townhouse in another.
Image source: myapartmentmap.com
How does Philly stack up against other cities?
Cities like Boston, which has an average rent of $2,100 per month, and San Francisco, which has an average rent of $3,357 per month, dwarf the City of Brotherly Love in apartment costs. Compared to other cities in the Northeast, this area is packed with affordable housing for rent. In Philadelphia, you can get a 564-square-foot apartment for the same price as a 375-square-foot studio in New York. According to MIT’s Living Wage Index, those in the Philadelphia-Camden-Wilmington metro area will spend about $799 per adult per month on housing.
It’s still ranked as the 12th most expensive city for renters, though. Compared to the national average, Philadelphia locals will still spend about 37 percent more on housing. So you’ll certainly pay more than the rest of the country but less than some other city-dwellers do.
Also, Philadelphia's renter population is absolutely booming, which is contributing to risking rent prices!
Image source: curbed.com
What can I get for my money?
According to trend data, the current average rent for a one-bedroom apartment is $1,189 per month, and a two-bedroom is $1,531 per month.
These are decent rates, but it’s important to note that you’ll likely spend the biggest cut of your income on housing. In Philly, locals will spend on average 35.4 percent of their income on housing, according to the Bureau of Labor Statistics. That’s beyond the 30 percent that a financial expert would often recommend. About 18.5 percent of locals spend more of half of their income on housing.
Gentrification, smentrification … the rent seems stable for now.
Both the metropolitan area and the city itself have a low growth rate when it comes to rent increases.
The average annual increase in rent is 2.6 percent for the metro region and 0.8 percent for the city itself. That means that the area’s rents will stay fairly stable, though parts may actually be depreciating. Rents in Mayfair, for instance, went down by 7.2 percent from 2015 to 2016.
It’s possible that the slow depreciation the city has been seeing for years might be changing now because of gentrification. Lots of young urban-dwellers are moving to Philly because of its appealingly low prices. But the city has been grappling with the idea and consequences of gentrification and hasn’t exactly welcomed the concept with open arms. They don’t want their city to be turned wealthier and whiter. On the other hand, studies have shown that this change hasn’t been forcing poorer people out, contrary to popular belief.
Will the prices for houses, apartments, duplexes, and even rooms as a whole suddenly increase as a result of gentrification? It’s hard to say. As of now, the median household is worth $122,100 and the annual increase in that figure (4.5 percent) is on par with the increase in national home values (4.8 percent).
Image source: philly.com
That's about it!
If you’re trying to find places for rent in Philadelphia, PA, that are reasonably priced and in a good neighborhood, connect with a rental agent using Jumpshell. Whether you’re shopping for a condo, a cheap apartment, or a high-efficiency house to rent, connecting with a broker is the easy way to find the listing you’re looking for. Contact us online today.
