PHILADELPHIA, PA — Marcus & Millichap, has published its Philadelphia Multifamily Investment Forecast Report for 2025.
“Philadelphia’s multifamily market is poised for growth in 2025, driven by strong employment trends and rising demand from young professionals and investors,” said Timothy Stephenson, regional manager.
Marcus & Millichap’s 2025 Philadelphia Multifamily Investment Forecast Report provides investors with vital insight and analysis on the current state of the Philadelphia multifamily market, including:
Life sciences expansion fuels rental demand – With major investments such as Legend Biotech’s new facility and Spark Therapeutics’ $500 million Innovation Center, job creation is expected to attract young professionals to rental markets in Center City and Fishtown.
Employment growth remains strong – The metro area has added nearly 40,000 jobs since 2022, outpacing all other major Northeast metros. While job growth is expected to slow slightly in 2025, total employment will have increased by 4% since 2022.
Vacancy rates set to decline – For the first time in four years, demand is projected to outpace supply, reducing vacancy to 4.5%, making Philadelphia the third-tightest rental market in the Northeast.
Rent growth accelerates – Effective rents are expected to rise at their fastest rate in three years, reaching an average of $1,910 per month, nearly matching the national average.
Investment opportunities expand beyond the urban core – While institutional investment remains strong in the city, policy changes and rent-setting software restrictions may shift investor focus toward high-performing suburban markets like Burlington and Bucks counties, where vacancy rates hover around 3%.
“The Philadelphia multifamily market continues to present significant investment potential, with vacancy compression, rent growth, and expanding business sectors creating attractive opportunities for investors,” added Stephenson.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services.
As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion.