Philadelphia’s housing scene is buzzing with change. After years of renting, more and more residents are trading in their leases for house keys — and it’s reshaping neighborhoods all across the city. Whether you’re a first-time buyer, a real estate pro, or a local moving company (hi, that’s us!), this shift from renters to homeowners is one trend you’ll want to keep an eye on.
The Current State of Renting in Philadelphia
If you’re renting in Philly right now, you’re actually doing a little better than renters in a lot of other major cities. As of April 2025, the median rent sits at $1,695 — about 11% lower than the national average. Naturally, this number will vary significantly depending on the neighborhood and apartment type.
That said, it’s still a hefty monthly bill for many, especially compared to just a few years ago when pandemic-era deals made rents more affordable. While Philly isn’t quite hitting New York or Boston prices (thankfully), the steady climb has more people thinking: maybe it’s time to buy instead of rent.
Popular Neighborhoods for Renters:
If you’re renting in Philly, you’ve probably heard the buzz around a few neighborhoods that are especially hot right now. Whether you’re looking for energy, charm, or a bit of both, here are a few areas renters can’t get enough of:
- Fishtown is where Philly’s creative spirit shines. Packed with colorful murals, indie shops, and trendy restaurants, it’s a magnet for young professionals who want a lively, walkable neighborhood with a strong sense of character.
- Graduate Hospital offers the best of both worlds — historic row homes, tree-lined streets, and quick access to Center City. It’s perfect for renters who want that “close to downtown” vibe without giving up a neighborhood feel.
- Northern Liberties (or “NoLibs” if you’re a local) is all about variety. From converted warehouses to modern townhomes, it’s one of the most eclectic, social spots in the city, loved for its walkability, cafes, and thriving nightlife scene.
Even though rent prices dipped slightly over the past year, affordability remains a big challenge. Nearly 52% of Philadelphia renters are considered cost-burdened, meaning they spend more than 30% of their income on housing. For a lot of longtime renters, that math just isn’t adding up anymore.
Between rising rents and economic uncertainty, many are starting to seriously explore homeownership, looking for stability, long-term investment, and a break from unpredictable rent hikes.
What’s Driving the Shift to Homeownership
Lifestyle Changes: The rise of remote work and a desire for more space have led many to consider homeownership as a viable option.
City-to-Suburb Migration: Residents are increasingly moving to suburban areas within the Philly metro, seeking affordability and larger living spaces.
New Construction and Developments: An uptick in suburban developments offers more options for prospective homeowners, catering to the demand for modern amenities and community living.
Popular Areas for First-Time Homebuyers
For first-time buyers ready to put down roots in Philly, there’s no shortage of great neighborhoods to choose from, especially if you’re looking outside the hustle and bustle of downtown. Over the past few years, we’ve seen steady growth in both Northeast and Northwest Philadelphia, with more buyers finding the right balance of affordability, space, and community feel.
Here are a few popular picks:
- Bustleton: Tucked away in Northeast Philly, Bustleton offers a quieter, suburban vibe with solid schools and easy access to major highways. Bonus: it’s a quick ride to Center City when you need it. Local Tip: Don’t miss the Eastern European restaurants scattered throughout the neighborhood — Samarkand is a favorite for authentic Uzbek cuisine.
- Roxborough: This Northwest Philly neighborhood feels like a small town inside the city. It’s known for its rolling hills, great parks, and strong community spirit. Local Tip: Spend a Saturday morning hiking along the Wissahickon Creek Trail. It’s a local favorite and right in your backyard.
- Mt. Airy: Historic homes, leafy streets, and a diverse, welcoming community make Mt. Airy a standout. It’s the kind of place where neighbors still say hello, and the real estate offers a lot of charm for the price. Local Tip: Swing by High Point Café for some of the best coffee and pastries in town.
- Manayunk: Perfect for those who want a little nightlife with their new home, Manayunk’s vibrant Main Street and proximity to the Schuylkill River Trail make it a top choice for younger buyers. Local Tip: Check out The Couch Tomato for casual, can’t-miss dining after a long day of house hunting.
Commute times and transit access also play a huge role for many first-time buyers. These neighborhoods are all within a reasonable distance to regional rail lines or major roadways, giving residents an easy way to get downtown without the stress of city parking.
Challenges for First-Time Buyers in Philly
Buying your first home in Philly is exciting, but it comes with a few hurdles to watch out for.
Competitive Market: Inventory is tight across the city, which means when a good home hits the market, it doesn’t stay there long. Bidding wars have become the norm in many neighborhoods, so if you find a place you love, you’ll need to act fast (and be ready with your best offer).
Older Home Renovations: Philadelphia’s historic charm is part of what makes the city so special, but it can also mean a lot of older homes in need of updates. From 19th-century rowhouses in South Philly to classic stone twins in Mt. Airy, buyers should budget for possible renovation costs.
Think along the lines of updating old wiring, replacing outdated plumbing, or tackling cosmetic upgrades to bring vintage spaces up to modern standards.
Understanding Property Taxes and Closing Costs: Another important piece of the puzzle? Budgeting for taxes and fees. In Philadelphia, closing costs typically run between 4% and 5% of the purchase price.
Plus, the city’s realty transfer tax is one of the highest in the country, totaling 4.278% (3.278% city tax + 1% state tax). It’s a big number, and one that can catch first-time buyers off guard if they’re not prepared.
Moving Solutions for Philadelphia
As more renters make the leap to homeownership, Philly’s housing market is going through some big changes — and smart planning is key. Whether you’re settling in Bustleton, Mt. Airy, or beyond, having the right team by your side makes all the difference.
At Gentle Giant, we know Philly inside and out. From historic row homes to suburban moves, our experienced Philadelphia movers are here to make your transition smooth and stress-free.
Ready to make your move? Check out our moving checklist for more information on preparing for a move, and use our free move estimate tool to determine the cost of your relocation.