Philadelphia Multifamily Figures Report Q3 2024

In Q3 2024, downtown Philadelphia's multifamily real estate market faced challenges due to oversupply, despite a growing residential population. Steady absorption rates were outpaced by new inventory, prompting landlords to offer concessions as leasing season waned. Investment activity concentrated on small-to-mid-sized assets, while larger properties remained scarce. In contrast, the suburban multifamily market demonstrated strong fundamentals and attracted institutional investors, though high construction costs hindered new developments. Despite recent Federal Reserve rate cuts offering some relief, the impact was limited, though interest in properties increased as evidenced by a surge in broker opinions of value. Looking ahead, optimism is growing for a market turnaround due to potential economic improvements and further rate cuts, suggesting increased investment and development activity in the multifamily sector in Greater Philadelphia.