A typical home in the Philadelphia-Camden-Wilmington, Pennsylvania metro area costs $240,900, well above than the national median home value of $194,500.
The typical home in Philadelphia is also more expensive than in Pennsylvania as a whole, which has a median home value of $170,600. Philadelphia’s median home value is also the highest of any metro area in the state.
Residents of areas with more expensive real estate also tend to have relatively high incomes. In Philadelphia, the typical household earns $65,123 annually, higher than both the $55,702 median household income statewide and $55,775 national figure. Philadelphia also has the highest median household income of any Pennsylvania metro area.
Home values tend to be higher in dense, urban areas, where space is limited and land and property is more expensive as a result. The priciest homes in the country are in cities along the East and West Coast, where population density is also among the highest nationwide. In the Philadelphia-Camden-Wilmington metro area, there are 1,296 people per square mile, far greater than the average urban population density of 283 Americans per square mile across all metro areas nationwide. Philadelphia has the highest population density of any Pennsylvania metro area.
Home values in the metro area may also be augmented by the health of the local job market. People often relocate for occupational reasons, and an area with lower unemployment is more likely to have more expensive real estate. The Philadelphia-Camden-Wilmington metro area’s unemployment rate, however, was 5.4% as of August 2016, higher than the 4.9% jobless rate nationwide.
Despite the high unemployment rate today, improved unemployment among the Philadelphia-Camden-Wilmington workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the Philadelphia unemployment rate has fallen by 3.2 percentage points. Over the same period, home values in the metro area increased by 1.3%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.
Areas with high home values are often fairly well-educated. In addition to the better-paying jobs that educated residents often hold, the presence of good schools and universities are likely to increase demand for nearby homes. In Philadelphia, 36.0% of adults have at least a bachelor’s degree, a larger share than the 30.6% of Americans with similar education nationwide.
While Philadelphia is one of the more expensive housing markets in the country, it is certainly not the most expensive. By comparison, here are the top 10 most expensive metro areas in the nation.
|10||Santa Rosa, CA||$512,100|
|9||Oxnard-Thousand Oaks-Ventura, CA||$528,700|
|8||Los Angeles-Long Beach-Anaheim, CA||$540,600|
|7||Santa Maria-Santa Barbara, CA||$547,600|
|4||Urban Honolulu, HI||$629,900|
|3||Santa Cruz-Watsonville, CA||$668,300|
|2||San Francisco-Oakland-Hayward, CA||$718,400|
|1||San Jose-Sunnyvale-Santa Clara, CA||$823,700|