MARKET SNAPSHOT

Philadelphia q1 2025

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AVERAGE RENT

$1,791 Q1 2025

OCCUPANCY RATE

94.0% Q1 2025

QUARTERLY NET ABSORPTION

2,943 Q1 2025

ANNUAL RENT CHANGE

2.1% Q1 2025

ANNUAL OCCUPANCY CHANGE

-50 BPS Q1 2025

QUARTERLY COMPLETIONS

1,859 Q1 2025

KEY TAKEAWAYS

Demand remains strong, with Q1 2025 net absorption reaching 2,943 units—the second highest first-quarter total on record and nearly 60% above new deliveries for the quarter.

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New supply is slowing, with only 1,859 units delivered in Q1—marking a two-year low—while under construction inventory dropped below 10,000 units for the first time since 2017, signaling tighter conditions ahead.

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Rent growth is building momentum, with the recent 2.1% annual increase marking a transition from stabilization to growth. Annual gains are projected to exceed 3.0% by year-end. Meanwhile, occupancy remains steady at 94.0%, just below the market’s 10-year average, reflecting a balanced supply-demand environment.

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