Philly Multifamily: Improving Vacancies and Rent Growth

The Philadelphia multifamily market was marked by declines in overall vacancy rates, an increase in asking rents and record-setting construction activity in Q4 2016. According to statistics from Cushman & Wakefield’s Philadelphia research team, vacancy stood at 3.6%, down 40 basis points year over year. “The primary reason for the decline was due to the 3.786 units that were absorbed in 2016, the highest annual absorption total on record for the market,” said Cushman & Wakefield’s Jared Jacobs.

Asking rents rates increased by 4%, while effective rents grew by 4.2% year over year.

New construction totaled 3,033 units in 2016. Combined with 2015 totals, 6,722 new units have delivered during the past two years, a 2.9% increase over the number of units that came to market from 2010 to 2014. Jacobs is forecasting an increase in rental rate growth and net absorption.

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