Philadelphia Multifamily Figures Report Q1 2025

In the first quarter of 2025, the Greater Philadelphia multifamily market faced economic turbulence as a result of tariffs, rate volatility, and looming potential recession concerns. Despite robust demand, the current market still favored tenants, with hefty concessions offered by landlords as owners prioritized occupancy over rent growth, particularly in downtown neighborhoods where new supply is abundant. In stark contrast, suburban markets thrived with high occupancy rates, strong fundamentals, and limited new construction driven by prohibitive costs and space scarcity. On the investor side, healthy market fundamentals led to heavy competition in the suburbs while traditional institutional buyers shied away from downtown investments as they waited to see how current economic and political instability will ultimately pan out in the market. However, despite being faced with volatility amidst economic uncertainly, relative to the current stock market, multifamily properties can be viewed as a stable, flight-to-quality safety asset. With leasing season quickly approaching, the Greater Philadelphia multifamily market is expected to have a telling period in the coming months.