Rental Homes in Philadelphia, Pennsylvania
(2024 Case Study)
This month, our team at Signature Properties took a close look at the rental market in Philadelphia, Pennsylvania, to better understand rental rates, unit sizes, occupancies and many other interesting stats in this area.
As part of doing business, we buy houses and turn them into rentals.
For that reason, this research was critical for us to better understand one of our main exit strategies in Philadelphia.
Here’s what we found out:
Key Takeaways
- On average, a rental home in Philadelphia will cost you $1,600 per month.
- 8% of all rentals in the area are single-family houses (vs. apartments, condos, etc.)
- 16% of rentals are 3-bedroom units. Most tenants with families prefer a 3-bedroom rental.
What Is The Average Rental Rate In Philadelphia? It’s $1,600.
After researching the various rental listings and descriptions in Philadelphia, Pennsylvania, we discovered that the median rental rate in Philadelphia is $1,600. This is 23.7% lower than the national average of $2,099.
We also noticed that when considering all rental data available in Philadelphia, the typical range (25th – 75th percentiles) is roughly between $1,000 and $3,000 per month. There are only a handful of landlords charging more than ~$3,000 – these are luxury or high-end rentals.
When compared to other places near Philadelphia, such as Cherry Hill, Wilmington, Allentown, and Lancaster, Philadelphia’s house rental rates are mostly comparable but often a bit higher. You pay a premium for being located in the city of brotherly love!
Other locations, such as Johnstown, Pennsylvania, however, have cheaper housing options.
Is your rental property in disrepair? You can easily sell it for cash to a professional home buyer in Philadelphia.
Are There More LTRs or STRs in Philadelphia, Pennsylvania? Yes, 60% More!
My team also noticed that Philadelphia, Pennsylvania lists 60% more long-term rental homes for lease than short-term rental houses. While most listings are for long-term rentals, a smaller selection (38%) represents mid-term or short-term rental listings.
For the most part, these rental listings in Philadelphia were active and available. However, there were a few already scooped up by tenants or “pending contract”. In a populated market like Philadelphia, numbers can change quickly.
As pointed out above, many of the rentals were for an entire single-family home. However, there are other larger companies in Philadelphia who have apartment buildings and townhomes for lease. Some of the major landlords in Philadelphia include Chestnut Hall, Odin Management, Rushmore Management and OCF Realty.
Important note: not every rental unit is equal. Some have dedicated parking spaces, indoor garages, storage units and swimming pools. These perks often garner a larger monthly rental price.
29% of rental units in Philadelphia, Pennsylvania are for single-family houses or townhomes
Over half of the rentals were for an entire single-family home or townhome. In Philadelphia, you can also rent an apartments, condominiums, cooperative units or similar types of places.
How Many Rentals Are 3-Bedrooms Or More? About 22.5% In Philadelphia.
Most rentals with 3-bedrooms also have 1+ bathrooms.
Though there are some rentals that are categorized as studios or efficiencies, there is not a lot of those available.
And, as one might expect, the more bedrooms your rental house has…the bigger the price you will pay per month.
The market rate for 3-bedroom homes in Philadelphia, Pennsylvania is currently $1,863.
Top 5 Rental Homes in Philadelphia
After reviewing a sample of homes available for lease in Philadelphia, Pennsylvania, we pulled out some current listings that we thought had potential:
- One-Bedroom Rental Option: This loft-like feel in University City will put your right into all of Philadelphia’s hustle and bustle. At $1,250/month, you can move right in.
- Two-Bedroom Rental Option: Two bedroom options in the Castor Lofts will run you anywhere from $1,498 – $1,746. Rest assured with the buildings night patrol and bike storage lockers.
- Three-Bedroom Rental Option: There is always something special and charming about downtown Manayunk. This rental on Conarroe puts you right in the center of it all.
- Four-Bedroom Rental Option: It’s hip. It’s cool. It’s fun. It’s Fishtown! And for $3,300 per month, it could be all yours to call home.
- Our Favorite Rental Option: If money is not an issue, then this Society Hill charmer might be on your radar. Out of all the digging and researching, this stood out as a favorite.
There were hundreds of other available properties, but this should give you a good taste of how the pricing and rental terms can fluctuate on a case by case basis. It’s also critical to understand Philadelphia’s different neighborhoods, which leads me to this:
Quick Tip: Not every block in Philadelphia is as safe and clean as others. Use this comprehensive guide of bad neighborhoods in Philadelphia to avoid renting somewhere you don’t feel comfortable.
Conclusion
In general, Philadelphia, Pennsylvania, presents an “okay” rental market for those looking move to or relocate within. It’s certainly not the most expensive city, but it’s also not the cheapest by any means – especially when you consider lower cost options just minutes away in New Jersey, Delaware and further into Pennsylvania.
Rental options are plentiful at the time of writing this case study if you’re a prospective tenant in Philadelphia.
If you already own a rental house and you’re interested in selling, my team and I can help you get it done quickly and seamlessly. Find out here how you can sell your house fast in Philadelphia.
One last tip: selling a house that is already occupied by tenants is not easy. However, it can be done. Find out here how to sell my house with tenants in Pennsylvania.
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Author: Doug Greene
Doug Greene is no stranger to all topics real estate and business. For over a decade he has been educating others and helping homeowners navigate difficult, complex problems with their property.
His work has been featured in the NY Times, Washington Post, Realtor.com, Apartment Therapy, HomeLight, Homes & Gardens and many more.