Why Philadelphia is a Great Renters City

So what makes Philadelphia such a great place to rent? Let’s delve into some of the main reasons for this turnaround.

What Makes Philadelphia Great for Renters?

From a quality-of-life perspective, there are already plenty of reasons to like Philadelphia:

• It offers big-city amenities with small-town vibes, a strong sense of community, and a friendly atmosphere.
• As the literal birthplace of the United States, Philadelphia is rich with history everywhere you look — even the home you rent might be a historic row house with its own stories.
• It has a high walkability score and is friendly to bikers, as well as having a strong public transportation system.
• The city is bursting with culture, from art galleries and museums to a rich culinary scene featuring everything from classic cheesesteaks to fine dining.
• The cost of living is very reasonable given its East Coast location.
• Lots of green spaces and parks.

But the city also offers some specific advantages for renters in particular:

• The rent is more affordable compared to many other East Coast cities while offering quick access to nearby major metropolitan areas such as Boston, New York, and Washington, DC. The median rent in Philadelphia is $1,650 per month, as compared to someplace like New York City, where it’s over $3,600 a month.
• Philadelphia has strong rental and tenancy protection laws.

Life in Philadelphia isn’t perfect, of course: some of its infrastructure is aging, the summers can be hot and the winters brutally cold, and the culture can take a bit of getting used to. But if you’re looking for an affordable place to live on the East Coast, Philadelphia has a great deal to offer.

Advantages of Renting over Buying

Of course, there’s nothing stopping you from purchasing a home in Philadelphia if you plan to make your home there, but you may find renting has some significant advantages over buying.

For example, renting may simply be more cost-effective than buying. The average mortgage payment in Philadelphia is around $2,490 a month, as compared to the $1,650 median rent. As a renter, you’ll also be free from paying any property taxes (which are notoriously high in Philadelphia), as well as not having to foot the bill for any home repairs or maintenance.

You also stand to save a bundle on insuring your belongings, as renters insurance is considerably less expensive than homeowners insurance. The average annual premium for renters insurance in Philadelphia is around $200, which is about 10% the cost of an equivalent home insurance premium. As Ross Martin at insurance comparison website The Zebra points out, renters insurance in the state of Pennsylvania can get even cheaper than that, with rates going as low as $69 a year if you sign with Penn National, or $107 a year with USAA. That means that even if you rent instead of owning your home, your possessions and legal liability are still covered, for a literal fraction of the price.

Why Property Investors Love Philadelphia

It’s worth mentioning that Philadelphia appeals to more than just individuals and families looking for a place to put down roots. It’s also become a magnet for property investors, who see Philadelphia as an up-and-coming source of passive income and positive appreciation.

Why is the city suddenly so appealing to investors?

• A large population and a growing pool of tenants, especially younger and more nomadic residents.
• The rising costs of the housing market are pricing more and more people out of home ownership (bad news for prospective homeowners, but good news for landlords).
• Residents are moving away from nearby major East Coast cities in favor of Philadelphia’s lower cost of living and rent-to-income ratio.
• Strong economic growth, especially in the fields of healthcare, education, tourism, research, and technology. A favorable economy means a higher demand for living space, which means investors can see a high ROI on their properties.
• A diversity of available property types, from residential apartments, condos, townhomes, office space, retail space, and more.
• As previously mentioned, Philadelphia has strong protections in terms of fair housing laws, both for tenants and landlords alike.

Of course, if you’re just a potential renter looking for a place to live, this may not seem significant — but it is a sign that the rental market in Philadelphia is strong and stable. 

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Less than a decade ago, Philadelphia was ranked as one of the worst cities for renters. Now, as its economy grows and the housing market creates new opportunities, it’s primed to become one of the best.