(Gross Yields from 13%, $97 Average Daily Rate)
Quick Facts
Population: – City – 1,603,797 (2020) according to US Census Bureaus
- Philadelphia County is the economic and cultural anchor of the Delaware Valley, the ninth-largest combined statistical area in the United States with an estimated population of 7.2 million.
- World Population Review states that Philadelphia is currently growing at a rate of 3.90% annually since 2010. As a benchmark, FreddieMac states that US cities grow at an average of 0.3%.
Cost of Living: Payscale ranks the cost of living in Philadelphia to be 17% higher than the national average. Philadelphia also has 30% higher housing expenses than the national average.
Active Rentals
There are 4230 active rentals in Philadelphia. Almost 75% of all listings are 1 and 2 bedrooms. Larger homes catering to bigger parties and families are potentially undersupplied. There are only 204 active 4 & 5-bedroom homes.
Average Daily Rate (Nightly Price)
The Average Daily Rate for rentals in Philadelphia is $97 dollars.
Throughout the year, the rate fluctuates by $17 from that average with the highest Average Daily in July ($99) and the lowest in February ($80).
Occupancy Rate
Occupancy Rates in Philadelphia County are the highest in the summer. The Occupancy Rate at an annual level is 37%.
The lowest occupancy rate was in February (23%) and the highest was in September (51%). Drop-in occupancy rates in February of 2021 can be partially explained by a surge in COVID cases.
Try our FREE Airbnb Calculator Get projections on revenue, average daily rate, cap rates, and a lot more.
High-Performance Properties
Chalet’s research shows that 5 bedroom homes have the highest percentage of homes in high yield territory (42.93%) therefore could be a good strategy for this market.
Chalet considers properties with a gross yield greater than 15% as high yield properties. Gross yield equals Gross Income/Purchase Price
Demand
The majority of the Philadelphia County short-term rental guests are domestic guests from the United States and May is when the presence of international guests is most noticeable.
International guests in May barely crossed the 4% threshold of total guests. The majority of international guests visit from Canada, the United Kingdom, France, Australia, and Germany.
The majority of Philadelphia County guests come from U.S. cities located within driving distance. We expect drive-to locations/cities to continue to do well in the post-covid world.
Other Facts
The average property tax rate is 0.99% which is double the state average according to SmartAsset. It is 0.08% lower than the national average of 1.07%.
According to Zillow, homes in Philadelphia County appreciated 8.0% year-over-year (YoY) and the median home price for active listings was $289,608 (as of March 2022).
Homes in Philadelphia average 53 days on the market according to data from Redfin.
The BLS reported that the unemployment rate in Philadelphia fell to 7.7% in January of 2022, which is higher than the national average of 3.8%.
Short-Term Rental Regulation
See Chalet’s detailed analysis of short-term rental regulation in Philadelphia.
