As we all know, the housing market has taken serious hits over the past year with the demand for homes surpassing the actual amount available. This in turn has home prices skyrocketing and buyers paying thousands of dollars over the listing price to win a bidding war with several other potential buyers.
The Philly area saw an influx of residents from other Metropolitan areas like New York City during the last year. NYC residents were attracted by the housing prices because they were a fraction of the cost of what is in NYC. This influx increased the amount of people choosing to co-live in places like the Common Civic which is where tenants can choose to rent a single high-end room measuring out to 800-1,240 square feet instead of a whole apartment for themselves. The rent for this type of living arrangement which included utilities and weekly cleanings, were between $900-$1,100.
Co-living has increased in the Philly area because it offers more affordable housing and living in cities that have rising real estate prices, especially to renters in their early to mid 20’s.
Active listings are still significantly down than a year ago. According to Realtor.com, the percentage of active listings in Metropolitan areas that include Philadelphia, Camden, and Wilmington were down 46% in February compared to February 2020. The amount of people buying homes has increased but there are still not enough on the market and the winter has slowed down construction considerably. With the housing demand, prices in the Philadelphia metro area have risen 12%.
There is hope in the near future that with the COVID-19 vaccine becoming more readily available, people will start to feel more comfortable with putting their homes on the market.