The Philadelphia Rental Market Trend Report analyzes four key data points: active listing growth, renter lead growth, average renter leads per property, and the average rent price for two-bedroom listings.
Active Listings – Our first data set is the month-over-month change in the total number of active rental listings advertised on the TurboTenant platform. Factors such as seasonality will impact this number, with the rental season peaking January through August. Due to the pandemic, eviction moratoriums, and stay-at-home orders, more month over month fluctuations were reported in nearly every market we analyze. Traditionally, this data point helps us gauge the rental supply in each market and provides a more in-depth seasonality analysis. Through the lens of 2020, inconsistencies in baselines were noted. As we compare 2021 to 2020 we will work to glean insights into if and when the rental market is beginning to normalize and mirror moving and inventory trends of years past.
Renter Leads – Our second data set is the month-over-month change in the total number of renter inquiries to a TurboTenant property listing. This data point is the demand side of our supply data point above.
Average Number of Renter Leads Per Property – Our third data point brings together the first two to give us a better understanding of the competitive landscape in each location. We compare the total number on a month-over-month basis.
Average Rent Price – Our fourth data point is the average rent price for a two-bedroom listing. Our analysis begins in January of 2020 and will continue throughout 2021. We want to understand how factors such as outmigration, changes in remote work and school, and eviction moratoriums impact rent prices in any given market.
Philadelphia Rental Market Trend Analysis
In the first half of 2020, active listings reported for Philadelphia followed seasonal and pandemic trends with a decrease month-over-month in active listings. Inventory spiked in July 2020, which may be correlative to out-migration trends from urban areas; August was on-trend seasonally, with a 37% increase month-over-month. In 2021, active listings have been very volatile with both increases and decreases – March saw an increase in listings of about 15% while April saw a decrease of 17% in active listings followed by a 29% increase in May.
Renter Leads and Average Leads Per Property
Demand on the renter side has experienced similar volatility throughout 2020. We saw the most demand in June of 2020 with 165 leads per property on average – a very large average compared to the rest of the year. The next largest renter demand occurred in October with 106 leads per property on average. In 2021, average leads in Philadelphia have dropped and have not returned to pre-pandemic numbers. This may be another indicator that city and urban areas are experiencing greater outmigration and negative impacts from the pandemic. The lowest average for renter leads was just reported in May 2021 at 14.
Year-over-year the average rent amount for a two-bedroom listing is slightly up as of June 2021 sitting at $1,488. In Philadelphia, average rent only experienced small decreases and increases compared to other metro areas throughout the pandemic with the biggest dip in February 2020 and the largest increase in December 2020 at $1,562. In 2021, average rents have mainly been up month-over-month.
We will continue to update this data every month. If you have data requirements that are outside the scope of this article, please email [email protected]. We have ongoing data collection and are happy to supply another data set if it is available. Check out all of our COVID-19 landlord resources here.
If you are in the process of filling your properties, TurboTenant can help streamline your rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.