Researchers at Redfin say the findings are the result of “stagnant” home values.
“Home values didn’t boom in Philadelphia as much as some of the other places,” said deputy chief economist Taylor Marr. “That leaves Philadelphia slightly more affordable in terms of home prices.”
The implicit house price for Philadelphia for Redfin’s analysis was around $250,000, roughly the median price of a typical home in the city.
Housing experts say the results are also reflective of Philadelphia’s status as the poorest big city in the country.
“So incomes just will not support the house prices that the incomes in San Francisco or New York will,” said Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation.
The report comes at a time when Philadelphia’s housing market is particularly weak.
High mortgage rates continue to discourage homeowners from selling and renters from buying. Mortgage rates and overvalued home prices are also contributing to an ongoing affordability problem and a market with incredibly low inventory because so few homeowners are moving.
And these dynamics aren’t expected to shift anytime soon.
“The market has kind of settled into place a little bit,” said Andrew Winkler, director of housing and infrastructure at the Bipartisan Policy Center.
