Market Insight: Why More New Yorkers Are Investing in (or Moving to) Philadelphia

[Steven Worley]

I've been keeping a close eye on a growing trend: Philadelphia has become the top out-of-state destination for New Yorkers looking to relocate—and it's starting to impact the local rental and investment landscape.

Here’s what’s driving the shift (and why it matters for investors):

Affordability Gap

• Philly’s median home price is around $256K
• Manhattan’s is over $1.1M
  This creates a huge opportunity for out-of-state investors looking for cash-flow-friendly markets without breaking into luxury territory.

Rent Gap & Stability

• Philly’s average rent is ~$1,700
• NYC averages over $5,100
  Lower rent means more accessible living, but it also indicates consistent demand—especially from incoming transplants priced out of NYC.

Market Movement

• More demand = longer-term tenant pools and increasing competition for quality units.
• I’m seeing increased interest in value-add multifamily, Section 8-friendly properties, and walkable neighborhoods near transit.

Why This Matters Now
Recent rental market trends in Philly have been cooling off—with Days on Market (DOM) climbing, and rental prices and absorption rates softening.
This inbound demand from NYC could help reinvigorate leasing activity and tighten up vacancy rates, especially in well-located or renovated units.

Hopeful Outlook
If this trend continues, it could shift local dynamics and help bring momentum back to a market that’s seen some slowdown. For those holding or acquiring in the right zip codes, it might be an early sign of recovery and renewed competition.