Large Multifamily Development Projects & Market Saturation

[Adam Garner]

As you all know, there are dozens of large multifamily projects (100 unit+) being built in the city.

Do you believe that developers are taking into account the number of units that are under construction before starting their projects?

Once many of these buildings are complete in the next 1-2 years, there should be a noticeable increase in the supply of rental housing. It is also my understanding that a sizable portion of this new housing is going to be luxury.

Do you believe that there are enough people migrating into Philadelphia to support the large increase in rental housing that is coming?

Some food for thought:

-Philly is more affordable than NYC, DC, and Boston

-More and more people are beginning to work remotely

-Projects may be funded by 1031 exchanges in Qualified Opportunity Zones

-In 2018, the homeownership rate in Philadelphia was 52.7% according to the United States Census Bureau

-Currently, inventory for Single Family houses in Philadelphia is low

-In 2019, the average household income in Philly was $64,838 according to Esri