Philadelphia is a great city to live in, as it is among the nation’s top-performing regions. If you’re planning on moving here, learn about what’s trending in the rental market before you start your search for your Philadelphia home.
You hear about terminology like average asking rent or average effective rent, but what are these and how do you read them?
- The Asking Rent aka Face Rent, Market/Street Rent represents the dollar amount the lessor is asking for in order to lease their space; the concessions come off of it. It is represented as an annual or monthly amount.
- The Effective Rent aka Net Rent is the amount paid over the term by a tenant, adjusted downward for concessions paid for by the landlord, and upward for costs that are the responsibility of the tenant.
Considering that last year the asking rent increased by 2.2% and the effective rent by 2.5%, the outlook for the current year forecasts a 3.2% raise in the asking rents. Good or bad? Good for the real estate market, showing moderate yet consistent apartment rent increases, but not as good for the renter who will have to spend more money on rent payments.
Figures express better what words struggle to: over the prior 6 months the average apartment rent has increased by $85.5; one bedroom units have increased by $39.5 and two bedroom apartments by $54.5.
One of the headlines in the real estate world is Location, location, location. Depending on the area you choose to reside in, you pay more or less for the same number of square feet and amenities. In Philadelphia’s case, the most expensive neighborhoods are Riverfront ($2025) and Fishtown ($1784), but if you don’t want to spend your entire paycheck on rent, check out one of the following ones: North Central ($1522), Wharton-Hawthorne ($1531), Hartranft ($1532) and City Center West ($1535).