Philadelphia, PA Housing Market
AI-powered market intelligence for the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD metro area.
PropertyIQ Scores
Philadelphia, PA Market Analysis
Market Overview
Philadelphia’s PropertyIQ Score of 68 out of 100 places the city in a moderate market position. The score reflects mixed signals: a 12-month home value momentum of 4.85% shows that prices have appreciated over the past year, but a 3-month momentum of -0.29% and a year-over-year median home value change of -$1 suggest that recent price movement has flattened or turned slightly negative. At the same time, a median days on market of 48 days and a price-cut share of 16.7% point to a market that is active but not overheated.
Compared with state benchmarks, Philadelphia looks relatively affordable and economically resilient. The median home value of $389,524 is below the state average of $406,074, while the median household income of $91,289 is above the state average of $84,954. The local unemployment rate of 4.2% is also lower than the state average of 4.8%. These conditions give Philadelphia a stronger affordability profile than the state as a whole, even though the overall property score remains in the moderate range.
The rental market strengthens the picture. Philadelphia’s rent index of $1,911 is well above the state average of $1,401, indicating robust rental demand relative to the rest of Pennsylvania. With 13,056 homes for sale, inventory is substantial enough to give buyers options, while 48 days on market and a 16.7% price-cut share suggest sellers may need to be more flexible than in a strong seller’s market.
Key Trends
One clear trend is cooling price momentum. The 12-month home value momentum of 4.85% shows that values posted gains over the past year, but the 3-month momentum of -0.29% and the -$1 year-over-year change indicate that those gains have flattened recently. This is reinforced by the 16.7% of listings with a price cut, meaning about one in six active listings has reduced its asking price.
A second trend is a shift toward more balanced or buyer-friendly conditions. With 13,056 homes for sale and a median days on market of 48 days, the market is not showing signs of extreme urgency. Combined with the 16.7% price-cut share, this suggests buyers may have more room to negotiate and sellers face more competition.
A third trend is rental market strength. The rent index of $1,911 is $510 above the state average of $1,401. That gap indicates stronger local rental demand, which can support investor interest and may also keep some would-be buyers in the rental market if home prices remain elevated relative to incomes.
A fourth trend is local economic resilience. Philadelphia’s unemployment rate of 4.2% is below the state average of 4.8%, and its median household income of $91,289 exceeds the state average of $84,954. These factors support housing demand, although population growth data is not available, so the demand-side picture from migration cannot be fully measured.
Who Is This Market For
Philadelphia’s profile suits buyers looking for relative affordability compared with the rest of Pennsylvania. The median home value of $389,524 is below the state average of $406,074, and the median household income of $91,289 is above the state average. This combination may favor first-time buyers or households with moderate incomes who can qualify for a mortgage more comfortably in Philadelphia than in higher-priced parts of the state.
The market also has appeal for rental property investors. The rent index of $1,911 is significantly above the state average of $1,401, suggesting stronger potential rental income. With a median home value below the state average and an inventory of 13,056 homes for sale, investors may find opportunities to buy at relatively moderate prices and rent to a solid tenant base.
Move-up buyers may find mixed conditions. The 12-month price momentum of 4.85% indicates some equity gains for existing owners, but the recent 3-month decline and 16.7% price-cut share mean that selling a current home may require pricing competitively. Buyers who are flexible on timing can likely take advantage of the 48-day median days on market and the negotiability implied by price reductions.
Outlook
The near-term outlook for Philadelphia is best described as balanced with a cooling tilt. The 12-month home value momentum of 4.85% shows that the market still has underlying annual appreciation, but the 3-month momentum of -0.29%, the -$1 year-over-year change, and the 16.7% share of listings with price cuts point to softening conditions. With 13,056 homes for sale and a median days on market of 48 days, buyers are likely to retain some negotiating power in the coming months. Offsetting that cooling pressure are Philadelphia’s lower unemployment rate of 4.2% and above-average median household income of $91,289, which support housing demand, along with a rent index of $1,911 that may keep rental demand strong. If current inventory and price-cut trends continue, home values may remain flat or face modest downward pressure, but the local economic fundamentals suggest the market is more likely to stabilize than decline sharply.
AI-generated analysis based on current market data. Last updated October 3, 2026.
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Philadelphia, PA market data
Philadelphia, PA Housing Market Overview
Philadelphia, PA's median home value is $390K, up 4.9% over the past year. Homes here sell in a median 48 days. Its PropertyIQ Score of 68 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
PropertyIQ tracks the Philadelphia, PA housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this PA market is set to perform against its state benchmark.
The Mid-Atlantic corridor benefits from proximity to major financial centers and government institutions. Housing markets in this region balance urban density with suburban expansion, creating varied opportunities from walkable city neighborhoods to rapidly growing exurbs. Within the Mid-Atlantic, Philadelphia, PA's PropertyIQ Score of 68 ranks among the Mid-Atlantic's stronger demand signals.
Pennsylvania's housing market spans from Philadelphia's dense urban neighborhoods to Pittsburgh's tech-driven renaissance and rural communities in between, offering diverse investment profiles at various price points.
The PropertyIQ Score for the Philadelphia, PA market is built from four inputs: Zillow home-value momentum over twelve months, Zillow home-value momentum over three months, the median days listings spend on the market (Realtor.com), and the share of listings with a price cut (Realtor.com). The score runs on a 1 to 99 scale computed across all metro markets nationally and calibrated so 50 equals the state average — a score above 50 means this market is positioned to outperform its state, and a score below 50 means it is set to lag. Momentum here has been positive, with home values up 4.9% over the past year.
View Philadelphia, PA's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
Counties in the Philadelphia, PA metro area
ZIP codes in the Philadelphia, PA metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Philadelphia, PA a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Philadelphia, PA currently scores 68, a firming-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $390K, up 4.9% over the past year. So whether Philadelphia, PA is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Philadelphia, PA?
Philadelphia, PA's PropertyIQ Score is 68, indicating firming momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 68 places Philadelphia, PA above its state benchmark.
Are home prices in Philadelphia, PA rising or falling?
Home prices in Philadelphia, PA are rising. Over the past year, the median home value increased 4.9%, reaching $390K. Over the latest three months, values slipped 0.3%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Philadelphia, PA's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Philadelphia, PA?
In Philadelphia, PA, homes sell in a median of 48 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 17% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Philadelphia, PA market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.