After some pandemic setbacks, Center City apartment market regains momentum
https://www.bizjournals.com/philadelphia...cx_testVariant=cx_8&cx_artPos=0#cxrecs_s
"After suffering setbacks in 2020, Philadelphia’s residential market, particularly apartment rents, occupancy and development, made a comeback last year and, in some cases, exceeded pre-pandemic levels, according to Center City District’s annual housing report."
"At the end of of 2021, 17,279 residential units were either proposed or under construction in an area defined as Greater Center City, which is bound by Girard Avenue, Tasker Street, and the Delaware and Schuylkill rivers.
“This was triple the number of units pending (5,352) at the end of 2020 and quadruple the number (3,982) at the end of 2019,” the report said."
"In five neighborhoods adjacent to Greater Center City, an additional 7,191 units are either proposed or under construction, bringing the total up to 24,470 units. The figure represents the bulk of the 34,612 units citywide. By comparison, at the end of 2020, 14,415 units were under development or proposed citywide, according to the report."
"Other takeaways:
• Apartment rents more than recovered. Between the end of 2019 and 2020, effective rents fell by 8.6% in Greater Center City. Between the end of 2020 and the end of last year, rent on a per square foot basis rose by 13.6% and is now $2.76 a square foot;
• The population living in Center City is young and educated. Those ages 20 to 34 make up 44% of the core Center City population, compared to 38% in Greater Center City and 26% citywide. Those ages 35 to 54 comprise 21% of Center City and 26% of Greater Center City;
• As of 2019, 67% of Greater Center City’s residents held a college degree, which is an increase from 48% in 2000. Those with bachelor’s degrees in Center City rose from 67% in 2000 to 78% in 2019;
• Net outmigration of households, those leaving the city, spiked during 2020 but has since reversed and nears pre-pandemic levels."
"The figures highlight a concerted effort by developers to secure permits before the expiration of the 10-year tax abatement so their projects can receive the full benefit of the break. Permits are valid for a year after being issued, and even though they have them in hand, it doesn't mean all of those projects will get built. Several variables will influence the number that actually do come to market."
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