Whether you prefer the energy of Center City or the family owned feel of Fishtown, Philadelphia is a first-time home buyer haven.
We spoke with Movoto Certified Agents Barbara Kirsch and Tammy Washington to learn the most important things you need to know about house hunting in the City of Brotherly Love.
1. It’s Cheaper To Buy Than Rent In Philadelphia
With the job market expanding, rent prices are being driven up. This makes it the perfect time to buy a home in Philly rather than rent.
If you take out 30-year fixed loan of $175,000 at a 4.5 percent interest rate, you can expect your average monthly mortgage payment to be somewhere around $900.
Although this estimation doesn’t include taxes or any mortgage insurance you might need, it still appears to be a better move than paying the median rent price of $1,300 that could keep increasing as the years pass.
2. The City Offers Grant Money For First-Time Home Buyers
A great way for first-time home buyers to jump into homeownership is with down payment and settlement assistance via grant money from their city. Though many cities have these programs, Kirsch says that Philadelphia is especially generous with the amount of money “that continues to pop up” for first-time buyers.
“I just saw yesterday a no-money-down, 2.9 percent financing grant available to first-time buyers,” she said, “It’s the city’s way to get some of these homes which are bank-owned occupied again.”
Compared to New York City with a grant income limit of $67,100 for a family of four, Philadelphia will offer grants to the same size family that makes up to $97,800. The grant money in Philly is sure to go a lot further than in NYC, where home prices are much less affordable.
3. There’s New Energy To Rebuild And Rehab Downtown Areas
The revitalization of Philadelphia is making the city more valuable and more attractive, with expansion of neighborhoods in every direction. Private developers are constructing condos and apartment buildings on empty lots, and in general, older buildings in Center City are being rebuilt and remodeled.
Many public and private groups are working to take on more affordable housing, economic development, and education improvements across many of the city’s neighborhoods.
4. Philly Gets An A+ In Affordability Compared To Other Big Cities
With the median list price at $145,900 and the median household income at $30,942, Philly’s affordability is great when compared to other bustling metropolises. When you take a look at New York City, with the median list price at a whopping $539,000 and the median income at only $39,195, Philadelphia sure has a right to brag.
5. There Are Lots Of Available Homes On The Market
With so many homes for sale (right now there are almost 20,000 on the market), there’s less competition among buyers than in other hot markets. This means you’ll have a fairly good shot at getting the house you want.
There are lots of new condos and rehabs being built as well, which are just expanding the housing options.
6. You Can Enjoy Urban Amenities At A Fraction Of The Price
Even right in the heart of downtown, housing is affordable. Center City is a bustling area filled with everything the urban lifestyle has to offer, from public transportation and worldly restaurants to prestigious colleges and shopping districts.
You can enjoy everything a metropolis like New York City has to offer without having to pay the steep cost of living prices. A recently renovated two-bedroom condo in the heart of Philly’s Center City can go for around $259,000, while the same situation in Manhattan could run you upwards of $1,000,000.
7. Property Taxes Are Low For Such A Big City
Relative to other large cities, Philadelphia has very low property taxes. In fact, of the entire city’s tax income, only 17 percent is from property taxes.
When compared to more than 40 percent property taxes in New York City and 36 percent Washington, D.C., Philadelphia is certainly a great place to own property with such low taxes.
8. Center City Is Easily Accessible From Other Neighborhoods
If you don’t want to live right in the heart of it all but still want head downtown on occasion, there’s plenty of neighborhoods that have public transportation with easy access to Center City.
According to Washington, “from the subway and the El train to buses, trolleys, and regional rail, you can get most anywhere,” making Philly a great city for commuters. In other big cities like San Francisco, the subway line only goes through the central part of the city, leaving other areas with less convenient public transit options.
If you’re dreaming of that two-car garage, however, have at it. Philadelphia was built as a true grid system, making navigating the city easy and efficient unlike other big cities like Boston with its winding roads that cause major traffic delays.
According to WalkScore.com, Philly is the fifth most walkable large city in the U.S., and is also very bikeable with its bike lanes drawing a ton of bicycling commuters. The bottom line—Philadelphia is a very accessible city.
9. Philly Is A Safe City In Terms Of Natural Disasters
Dealing with weather is something many buyers become all too familiar with when it comes to buying insurance for their home.
While some cities have to constantly battle flooding, tornadoes, hurricanes, and earthquakes, Philadelphia seems to have found the sweet spot of rather mild natural disasters.
Other than the occasional winter blizzard, the City of Brotherly Love doesn’t typically have to brace for some of the more destructive weather patterns other major cities see.
10. The Crime Rate Is Dropping Faster Than Both New York City And Los Angeles
While the number of total crimes per 100,00 residents dropped 2.5 percent from 2012 to 2013 in New York City and 3.7 percent in Los Angeles, it went down almost 7 percent in Philadelphia according to the FBI Uniform Crime Report for those years.
Although the crime rate in Philly is definitely decreasing, the overall crimes committed per person is still higher there than in New York City and Los Angeles.
Crime levels very much depend on which neighborhood you choose to live in, so before you start looking make sure you do your research on each area. Some amazing Philly neighborhoods with the lowest crime rate in the city are places like Chestnut Hill, City Center, Riverfront, and East Falls.
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