Market Watch: Philly Projected to Be One of the Most Competitive Housing Markets in 2

[Steven Worley]

According to a recent Zillow projection, Philadelphia is expected to rank as the 5th most competitive metro area in the U.S. for homebuyers this year.

Key drivers behind this trend:
-Low housing inventory keeping supply tight
-High mortgage rates creating cautious but motivated buyers
-Relative affordability compared to nearby metros (NYC, D.C.)
-Continued migration interest from out-of-state buyers, especially from New York

What this could mean for investors and landlords:

• Increased competition for entry-level and mid-range properties

• Potential for stronger appreciation in key neighborhoods

• Ongoing pressure on rental demand if buyers continue to be priced out or delayed by rates

Curious to hear from other Philly investors — are you seeing more competition on your end already? How are you adjusting your strategies heading into mid-2025?