With a high number of distressed and foreclosed properties available in the area and higher favorable rental rates, it is possible to acquire properties at a low cost with a high return through rental.
As Philadelphia recovers and as its neighboring city Trenton, NJ begins to complete its redevelopment of its downtown area, there will be more and more demand for rental housing in the Philadelphia area.
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the fifth-most-populous in the United States. In the Northeastern United States, at the confluence of the Delaware and Schuylkill River, Philadelphia is the economic and cultural center of the Delaware Valley, and is the only World Heritage City in the United States. The estimated population in 2014 was 1,560,297.
Philadelphia has shown a healthy recovery in home values and a steady decrease of inventory making this the most opportune time to acquire properties in the area. The majority of the remaining inventory is comprised of lower valued homes, which require capital improvements that homebuyers in the same price range could not afford to complete.
Like Trenton’s rental market, Philadelphia has also seen double digit increases since 2009. In 2015, Two bedroom units averaged just below $1,500 per month and one bedroom around $1,160 - an increase of between 20-30% from 2009.
This is evident from the chart showing the rental rates climbing, with projections of continued growth.
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