We have all been reading about a spike in home prices and rising rental prices, however there is still great value to be found in the City of Brotherly Love, especially for people looking for luxury apartments in Philadelphia.
In August, average monthly rents across the country increased by 9% over the past year, while the median monthly mortgage payments for new homebuyers increased 67% faster than rent, according to Redfin. As we approach the end of 2021, things haven’t changed much.
This was the seventh month in a row that growth in mortgage payments outpaced growth in rental rates. However, the August results also showed increased growth in rent prices and slowing growth in mortgage payments.
The nationwide rise in rents was fueled by spikes in cities in sunny Florida, California, and Arizona, which are attracting a newly mobile workforce, according to Redfin.
The top five metro areas with the highest-growing rents in August were are all in Florida: Tampa (29.2%), West Palm Beach (28.9%), Miami (28.9%), Fort Lauderdale (28.9%), and Jacksonville (26.8%). There is a price to pay for sunshine and warm weather in December, but I would rather be rooting for the Eagles than the Dolphins.
“Record high home price growth has priced many renters out of buying, leaving many facing higher rents this summer as more households look to move thanks to the rise of remote and flexible work arrangements,” said Redfin Lead Economist Taylor Marr. “The end of pandemic eviction moratoriums and mortgage forbearance may also cause landlords to raise rents to cover the risk of future tenant protections or make up for lost rental income.”
The average nationwide rent rate of $1,836 per month is still higher than the $1,494 median mortgage payment for new homeowners.
The company’s analysis revealed that despite near record-low interest rates, mortgage payments outgrew rent increases in half of those metro areas.
In a few major cities, rent is actually decreasing. The average monthly rent dropped by 5% in Pittsburgh, 3% in San Jose, and 1% in St. Louis.
While rent in Philadelphia is traditionally expensive the rates are growing at a slower rate than the national average.
The median monthly cost for rental properties in Philadelphia is $1,032 per month, although luxury Philadelphia apartments will start at two to three times that amount per month.
Among the nation’s most populous cities the median rent is very low; only San Antonio has lower rents than Philadelphia.
In a 2019 poll by The Pew Charitable Trusts, 58% of Philadelphia renters said that not having enough money for a down payment was a major reason why they continue to rent rather than own, and 34% cited the inability to obtain a mortgage. Others saw advantages to renting, including less stress, more flexibility, and the ability to live in a better neighborhood.
Another reason that doesn’t often go reported is amenities. For example, Post Brothers apartment rentals in Philadelphia can offer residents a wide range of desirable amenities.
At Presidential City, residents enjoy the Asian-inspired Sora Pool Club, a world-class fitness center, as well as an expansive garden and recreation area. There are three temperature-controlled pools, waterside and rooftop lounge areas, massage, personal care, and holistic spa services, a dry sauna, coed steam room, as well as tanning booths.
The gym includes specialized cardio, weight, boxing, biking, and stretching equipment, as well as free PostFit cardio, Pilates, yoga, cross-fit, spin classes, and private training sessions. Outdoors, Presidential City offers multiple dog parks and daycare services, full-size basketball courts, yoga and Zen gardens, and a luxury outdoor kitchen area for hosting friends and outdoor entertainment.
At Goldtex, residents are living in a luxury apartment in Center City with a rooftop pool, fitness center, panoramic skyline views, 24-hour concierge services, and basement garage parking.