Building Costs Per Square Foot in the City of Philadelphia (PA), USA

Newly Built Townhouse/Rowhouse in Philadelphia 25 Good St PA19119 – 4 Bed and 4 Baths with Open Parking on Gross Floor Area 3,300 sqft – Built in 2021 – Price $565,000 (2)

Backyard of New Townhouse in Philadelphia 25 Good St PA19119 – 4 Bed and 4 Baths with Open Parking on Gross Floor Area 3,300 sqft – Built in 2021 – Price $565,000 (3)

Residential Construction Market Analysis in the City of Philadelphia, USA

Building costs are 11% above the national average in the City of Philadelphia in Pennsylvania, equivalent to the city of Hartford, Fitchburg, Newark, Valley Forge, Warminster and Seattle. Philadelphia is the main city of the state of Pennsylvania and is located right next to Washington. It is a city known worldwide due to a large number of movies and series that take place or were recorded there. This means that it always captures the interest of people from all over the world.

Philadelphia is the sixth-largest city from the United State and the third most populous urban center. It has an economy that grows constantly, with their very own factories and farms working all year round.

The foregoing promotes a dynamic and attractive real estate market, which in turn offers the following advantages for investors who plan to diversify their investment in times of crisis, or for people who are looking for their first home and want to do it in a big city.

In this article, we will give all our attention to this city, specifically its real estate market. Here you will be able to know what the construction outlook is like in this city, what are the values ​​that the real estate market manages, and what is expected in residential construction throughout this year and in the near future.

Philadelphia Construction Outlook

The city of brotherly love is one of the cities in the United States that has been going through a significant change in its demographics and at the same time a visible increase in it, during the last few years. This is because the economy shifted from labor-based activities to a focus on jobs based primarily on technology, knowledge, and information services.

Of course, all these movements have generated the entry of a more modern population, with newer ideas, in addition to a higher educational level, giving its population greater purchasing power. All this made the construction outlook change completely.

They went from factory neighborhoods to modern buildings, suburban areas that have luxury houses, and even inside the buildings, there are some penthouses that are to die for. Philadelphia is a city that has evolved, reinvented itself, and adapted to change in an excellent and enviable way.

Many residential houses were also built that are not luxury but modern, perfect for middle-class families, where families of 4 to 6 members can live a life with all the comforts.

Philadelphia Housing Market Analysis and Forecast

Philadelphia represents an excellent opportunity when investing in a home in the United States. The real estate business in this city offers quite attractive returns in dollars, between 10% and 13% per year. By buying a house in Philadelphia, you will be protecting your capital, you will also be able to increase your economic wealth and represent a good business idea.

It is important to note that although there is a slowdown in the real estate market worldwide, this has not happened with the real estate market in Philadelphia and the United States in general. This specific market remains in good movement with new construction permits. Not only that but there are new housing projects, in addition to an excellent rate of sales of used and new homes, far outpacing the growth of the economy in general.

Although the average price of a property in Philadelphia exceeds the national average by almost 40%, some projections indicate that in the remainder of 2022 and 2023, homes in this city will be relatively cheap, compared to prices in other markets. important as New York, Boston, San Diego, and San Francisco.

Median home costs continue to grow steadily, rising as much as 12% each year. Likewise, the average Philadelphia investment property is expected to generate excellent rental income, with a return of over 8%. Remember that this profit serves you whether you are an investor or a person who bought that house to live there since this means that the value of your house always rises and is better (for you) than the value of your investment. initial.

Philadelphia Average House Price (Median Home Price)

The value of the median home in Philadelphia is $233,000, which is 6.5% of its value in June 2021. However, it is still much cheaper than the median home value of other cities such as NY, LA, and Houston.

It is expected that by the end of this year the value of the median home will reach $243,000, and in 2023 it will end up being worth $250,000. Only time will tell if these trends come true, but considering the forecasts and the increases of the previous years, it would not be surprising if it does happen.

Remember that the median home is an average between the value of all the properties for sale, so in reality, there is a great variation between prices. This variation in prices can work for or against you since they can also be more expensive values than you had in mind.

You can find some properties for $200,000 in case you are looking for lower values, even some apartments for $150,000. Also in the downtown area, houses can be priced at more than $300,000.

Proposed Residential Building Projects in Philadelphia

Among the most common projects in Philadelphia are some buildings under construction. They are not the typical skyscrapers, but they are large buildings with more than 10 floors, with apartments to accommodate up to 40 families.

There are also buildings under construction that have some one-bedroom apartments or studio apartments. These are perfect for people moving to the city alone who don’t want to have roommates but also don’t have the budget for large apartments.

In the outskirts, there are some houses or residential home projects, but they are not luxury homes. They are from houses with more than 3 rooms, modern, designed for middle-class families.

Newly Built Townhouse/Rowhouse in Philadelphia 730 Mercy Street PA19148 – 4 Bed and 3 Baths with Open Parking on Gross Floor Area 2,180 sqft – Built in 2022 – Price $499,000 (2)

Backyard of New Townhouse in Philadelphia 730 Mercy Street PA19148 – 4 Bed and 3 Baths with Open Parking on Gross Floor Area 2,180 sqft – Built in 2022 – Price $499,000 (1)

Building Costs Per Square Foot for Single Family Homes in the City of Philadelphia, USA

Building costs are 11% above the national average in the City of Philadelphia in Pennsylvania, equivalent to the city of Hartford, Fitchburg, Newark, Valley Forge, Warminster and Seattle.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Philadelphia City ranges from $382.83 per sqft to $586.86 per sqft, with the average being $468.07 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Philadelphia City ranges from $232.67 per sqft to $356.64 per sqft, with the average being $274.57 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Philadelphia City ranges from $150.41 per sqft to $228.45 per sqft, with the average being $176.09 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Philadelphia City ranges from $109.77 per sqft to $168.33 per sqft, with the average being $129.55 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Philadelphia City ranges from $89.10 per sqft to $136.45 per sqft, with the average being $105.06 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Philadelphia City ranges from $70.27 per sqft to $107.71 per sqft, with the average being $82.90 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.