Philadelphia's Multifamily Market Returning To More-Normalized Rent Growth

Multifamily rent growth across the Philadelphia metropolitan area has returned to a more normal pattern following a period of unprecedented escalations in recent years. Performance has normalized to its pre-pandemic, five-year average of 2.7%, with annual rent growth at 2.8% midway through the second quarter. In the past three years alone, apartment rents in the region have escalated cumulatively by 17.5% and continue to build on that gain. As renters digest the record rent hikes and tighten their budgets, apartment owners have felt the reduced demand from less-confident renters in recent quarters.