January 2020
Top 3 Reasons for West Philly
The growth in the West Philadelphia real estate market is significant and forecasted to continue. For this reason, we would like to share our top 3 reasons why West Philadelphia makes a great place to invest in 2020.
1. Demographics
Philadelphia has seen a significant growth in millennials and has thus turned into a millennials magnet. Since the year 2005, the city has seen a 41% growth in millennials. Most of the growth came around the financial crisis of 2008. Other cities, like San Antonio or New York, only increased their millennials population by 35% and 17% respectively, even though these cities are just as dynamic as Philadelphia. See chart "Change in Millenials Since 2005" for details.
Most importantly, Philadelphia has been able to retain almost all of its millennials. This is important. First, this young generation brings energy to the city, and second, because this young generation is beginning to enter their home-buying years now. This has a very positive effect on housing demand in and around the city. What has attracted these people to Philadelphia?
2. Jobs
People have flocked to the city of Philadelphia, because it has had a significant and steady growth in jobs. Between January 2005 and December 2019 more than 128,000 new jobs were created. With about 695,000 total jobs in December 2019, the city is about to break the 700,000 mark for the first time. This constitutes a growth of 23% over 14 years. It is important to note that the city remained very resilient during the 2008 financial crisis. While other cities shed many jobs, Philadelphia was hardly affected. See chart "Philadelphia City - Employment Evolution" for details.
The city of Philadelphia is the region’s job center. While you may not have been looking, Philadelphia has slowly but steadily worked its way into the ranks of the world’s economic powerhouses, largely on the strength of its biomedical sector. In 2019, gene and cell therapy companies in Philadelphia attracted a record $501 million in venture capital funding, and the region now ranks third behind only Boston and New York in the total volume of National Institutes of Health research funding. Most of this money flows into University City, which will accelerate its emergence as Philadelphia’s “second downtown”, and also propel a wave of redevelopment that is moving to West Philadelphia. Click here to visit Technically Philly for more details.
3. Developments
In 2017, two large developments were proposed in West Philadelphia: the 30th Street Station District and the Schuylkill Yards. The former is a 7 to 11-billion-dollar urban development project that will be the home to eight skyscrapers. It is expected to create up to 40,000 additional jobs in the city of Philadelphia and it will be well connected to downtown Philadelphia and other parts of the city. For more details click here.
The Schuylkill Yards project is a mixed urban development that is split among residential, commercial, retail, and laboratory spaces. Both of these new developments are transforming West Philadelphia into a modern urban environment with vibrant parks, lifestyle experiences, workspaces, and houses. For more details click here.
However, not only the large-scale developments are changing the landscape of West Philadelphia. Smaller investors are also moving in and transforming residential neighborhoods house by house. Take the Cobbs Creek neighborhood as an example, where an investor turned the turn-of-the-20th-century rowhouse below into a stylish ultra-modern looker at the end of 2019. For more information click here.
The good news is that West Philadelphia residential neighborhoods are largely made up of similar turn-of-the-20th-century rowhouses that are waiting for investors like you.
You have the opportunity to participate in the lucrative real estate market. Place your investment in a city that is growing sustainably. Allow us to introduce you to a form of real estate investing that provides excellent security and a high rate of return.
