The Greater Philadelphia market is witnessing significant evolution driven by affordability constraints and shifting demographic preferences. As developers and industry stakeholders navigate these new realities, several key trends have emerged:

1. Renting Surpasses Homeownership in Iconic Suburbs

In King of Prussia, renters now outnumber homeowners for the first time. Between 2018 and 2023, renter households increased from 41% to 52%. Rising home prices and interest rates have reshaped traditional suburban homeownership models, positioning multifamily rentals as the go-to choice for residents prioritizing flexibility, convenience and cost-effective living.

2. Robust Multifamily Supply Meets Strong Demand

Philadelphia’s multifamily market remains resilient with a record-breaking pipeline of nearly 17,000 units currently under construction and another 77,000 units planned. Despite this substantial growth, stabilized properties maintain a healthy occupancy rate of 95.5%. Submarkets including Pottstown and Wilmington-Central have experienced double-digit rent growth, underscoring the ongoing strength of regional rental demand.

3. Redevelopment Opportunities & Challenges

Suburban redevelopment projects such as Exton Square Mall illustrate both the potential and complexity of mixed use transformations. Developers are balancing municipal and resident priorities around density, open space and infrastructure capacity. These projects, although complicated, are essential for suburban revitalization, creating vibrant town centers that incorporate residential, retail and commercial components.

4. Suburban Migration Driven by Affordability

With Philadelphia’s urban core facing ongoing affordability pressures, suburban communities like Conshohocken and Phoenixville have emerged as prime locations for rental development. These suburban multifamily developments offer accessible pricing, appealing amenities and proximity to key employment centers, driving significant renter interest and reshaping regional growth patterns.

5. Market Stabilization & Balanced Conditions

Philadelphia’s housing market indicators show mixed signals, indicating stabilization after years of rapid growth. Although price appreciation has slowed, home values remain historically consistent. Rising inventory and longer sales periods signal a transition from seller-dominated to balanced conditions. This moderation is a positive shift, potentially enhancing future affordability and market stability.

As Philadelphia’s market continues to evolve, staying informed on these key trends will be essential for capitalizing on development opportunities across the region.

SOURCES

Renters Now Outnumber Homeowners in King of Prussia

Philadelphia Multifamily Market Report

Exton Square Mall Redevelopment Faces Community Concerns

Jeremy has over 30 years of experience with multifamily, mixed use, affordable design, senior housing, single family residential, commercial, retail and amenity projects. He also has wide-ranging experience in the planning and urban design space. He joins BSB Design as Principal in our Philadelphia office after 15 years with a national homebuilder. He was also previously a partner in an architecture and planning firm in the Greater Philadelphia area. Jeremy is also a LEED accredited professional and has experience in sustainable design and energy performance.