Real estate has seen a boom in recent times. Many people are investing in the real estate sector. In Philadelphia, there has been a steady increase in housing trends. Philadelphia is one of the oldest and most prominent cities in the USA. The city is a perfect place to invest in real estate, according to predictions in 2021. The town’s population is slowly growing over the past years and is the USA’s sixth-largest metropolitan area. Let us brush over some housing trends and the factors making it a lucrative place to invest in real estate.
The real estate is affordable
The average selling price for real estate in Philadelphia is about $208,000.The prices vary widely among different houses. One can find homes ranging from about $40-$60,000 for sale. In addition, one can find old homes and condos they can flip, earning a modest profit margin. Within the various zip codes, homeowners convert most of the houses.
Landlord friendly area
Pennsylvania is a landlord-friendly state. For instance, there is no payment grace period law. Also, the state does not require any landlord to have a license to rent out a house, and it does not have any pet laws like other states. For anyone buying a home, it is an excellent state to invest in.
It is a solid short-term rental market
Many cities have jumped into the bandwagon of having Air BnB, and Philadelphia is no different. The town is a historical site and a good place for tourists to visit while homeowners are getting an income. One of the few conditions is paying up 8.5% tax of all income to the state county, and the property to be rented out should look like a home. One can rent out multi-family housing as long as the homeowners fill out the proper documents.
Offers a large rental market
An estimated 46% of the housing units in the Philadelphia market are rental housing. It is contributed by the fact that most of the urban population are poor, and most singles live alone in the area. The traditional rental income from properties is approximately $1300 a month. The rent prices have increased over the years, making it a desired location to own property.
The above trends are what make Philadelphia a desirable area to purchase a rental property. The area is affordable to buy a new home while it offers a good return on investments.