Philadelphia Rental Market
Understanding the
Philadelphia Market
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5-8%
Average vacancy rate in Philadelphia
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20-40
Average number of days a unit stays on the market
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Philadelphia’s vacancy rate is roughly 5-8% but varies based neighborhood. By contrast, New York City or San Francisco may have vacancy rates of around 1-3%. What this means is that the average rental unit in Philadelphia will is on the market for 20-40 days versus compared to under a week in New York or San Francisco.
In practical terms, if you have reasonable budget and location preference, you shouldn’t be worried that every good option you find will fly off the market before you have a chance to think through your decision. That said, attractive units that are priced well can move quickly, especially during the peak housing season of May-August.
In practical terms, if you have reasonable budget and location preference, you shouldn’t be worried that every good option you find will fly off the market before you have a chance to think through your decision. That said, attractive units that are priced well can move quickly, especially during the peak housing season of May-August.
Timing your
apartment search
Research:60+ days prior to move-in
We recommend you start with light research at 60+ days from your move-in date to get a sense of what you can realistically expect within your budget, and which buildings fit your your desired amenity and location preferences. Try to narrow down your options to roughly 4-6 top properties and then save those for the 45-60 day window, when it is ideal to schedule showings.
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Viewings:45-60 days prior to move-in
In most lease contracts, tenants do not have to tell their landlord they are moving out until roughly 60 days prior to the end of the lease. As a result, we suggest scheduling viewings about 45-60 days prior to your move-in date, when many units available for that time period will just start hitting the market. That said, there are exceptions; some properties know their availability in advance of 60 days. In other cases, where an existing tenant breaks their lease, units can become available on short notice.
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Signing:30-45 days prior to move-in
After you discover the apartment you love, we suggest closing on the unit as soon as possible – ideally, 30-45 days prior to your move-in. You will want to allow for time to schedule for movers, cable installation, as well as switching over or signing up for utilities and services like renters insurance.
That being said, Philadelphia tends to have vacancy throughout the year, so you'll almost always have options, even if you need to find something in a few days. |
Other nuances of the
Philadelphia Market
Pricing:
You will see all sorts of average rent lists online, and often prices listed are far below or above that of the properties you are viewing. The problem with most rental price summaries is they combine all types of listings and don't appropriately account for 1) where in Philadelphia they’re located (a few blocks can make a difference), 2) when they were rented, and 3) what size/amenities are offered. Therefore, we suggest simply comparing 3-5 properties with the location and amenities you want to get a sense for what your budget can get you.
Negotiating:
You can try negotiating, but don’t expect it to go far - many apartment buildings will absolutely not change their price. If you are looking at an individually owned unit (i.e. a condo or home rental), the owner may be willing to discount $50-100 if your move-in and availability of the unit line up well. There will certainly be instances where a landlord is highly motivated to move a unit and may discount more, but most properties spends a fair amount of time determining the price of their apartments, so once that price is set, it is a large commitment, both emotionally and financially, for the ownership to reduce it further.
Apartments vs condos:
Often you’ll see a unit called an apartment or a condo, but to you they both seem the same: doorman buildings with communal amenities. There are a few key distinguishing factors between the two with regards to real estate terminology, but in general, think of condos as individually owned units that the owner is renting out, while apartments are typically owned by one company or person. This means units in condos are more likely to vary significantly in price, layout, and unit features, while apartments will have often have more consistent features and availability.
Brokers:
Real estate sales agents (often called brokers, though a "broker" is technically their employer) are free in Philly but may be limited in the units they can show. In Philadelphia, properties that use agents pay the agent upon a successful move-in, rather than in some other markets where the renter pays the broker (such as NYC). Agent quality will naturally vary based on the person you’re working with. Typically, all agents have access to the same inventory – because some properties will not work with brokers or pay a smaller commission, agents may be unlikely to recommend units in those properties. By contrast, some individually owned units are only shown by agents. Therefore, if you require more hand-holding and are okay with a potentially narrower set of units, agents can be a helpful option.