Philadelphia Q2 2026 Market Report

Key Takeaways

• Trailing four-quarter absorption has outpaced new completions for five consecutive quarters, demand that reflects Philadelphia’s position as one of the largest and most diversified metro economies in the country.
• The pipeline is contracting decisively, with starts down and the construction total now at its lowest level in over a decade, pointing to further delivery declines through 2027.
• Rents grew 1.9% year-over-year, ranking second in the Northeast behind only New York, while occupancy continues to firm sequentially, a combination that reflects Philadelphia’s steady, durable growth profile rather than the boom-and-bust cycles playing out in faster-growing Sun Belt markets.

Market Outlook

Philadelphia’s multifamily market is positioned in the late stages of its supply cycle, with both starts and deliveries declining…