Quote:
Originally Posted by cardeza
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Replying to your post, but not calling you out.
While the rental market may be in a temporary dip, the details don't paint a grim picture.
(I see this headline as keeping with the trend of all doom & gloom in Philadelphia, versus an actual informative measurement of the market)...
1. Per an article quote, during market equilibrium, 5.5% of buildings offer concessions, the current rate is 8.4%, also coming out of the slower winter months.
2. Concessions aren't a new phenomenon, and Philadelphia actually ranks on the low end of markets offering concessions (lower than hotspots like Atlanta, Nashville, Austin, etc.).
https://www.zillow.com/research/rent...essions-33386/
3. There are thousands of units coming online at nearly the same time in a relatively small geographic area, yet the overall rental vacancy rate in Philadelphia is still well under 10%. This is likely a brief period of higher vacancies/concessions while units are absorbed. By early 2025, the amount of units coming online will drop significantly and the market will have time to catchup.
4. Lastly, as the Ryland developer said, this is temporary and not really alarming.