Philadelphia has long stood out among major U.S. cities for its strong culture of homeownership, particularly among lower income households. However, new findings from the Federal Reserve Bank of Philadelphia reveal that this advantage has eroded over the past two decades. While other cities saw gains during the pandemic, Philadelphia moved in the opposite direction as affordability challenges intensified.
Key Points
• Philadelphia’s homeownership rate fell from 57.5 percent in 2005 to 52.4 percent in 2023, a sharper drop than national and peer city trends
• Fewer than 40 percent of home sales are now affordable to households earning the city’s median income, down from more than 60 percent a decade ago
• Significant affordability gaps persist by race and household structure, with Black and single earner households able to afford far fewer homes
• Rising home prices, higher interest rates, and increasing debt burdens are limiting access to homeownership and mortgage approvals
Philadelphia’s shifting housing landscape highlights how affordability and income pressures can reshape long standing homeownership patterns. Addressing these challenges will be key to preserving access to homeownership in the years ahead.
