The real estate market in the Philadelphia region continues to present a mixed picture for homebuyers in 2024. While the area is slightly more affordable than the national average, homes remain out of reach for many, according to a recent report from Redfin.

Housing Affordability in 2024: A Complex Picture

Affordability is defined by whether households spend no more than 30% of their income on housing costs. Nationally, the typical household needed to allocate a staggering 42% of its income to housing in 2024. By contrast, homebuyers in the combined markets of Philadelphia and Delaware Counties spent about one-third of their income, slightly easing the burden compared to the national average.

The median household income in Philadelphia and Delaware Counties was $72,681 in 2024, while the median home sale price stood at approximately $281,162. This translated to a median monthly payment of $1,985 for homebuyers in the area—well below the national median of $2,920.

Suburban Costs: A Higher Price Tag in Montgomery, Chester, and Bucks Counties

In the suburban counties of Montgomery, Chester, and Bucks, affordability was an even greater challenge. Here, households spent a median of $3,429 per month on housing costs. The typical household income in these areas was $123,187 annually, and the median home sale price reached $477,997 in 2024. These figures underscore the higher cost of living in these suburban markets compared to Philadelphia proper.

The Big Picture for Homebuyers

While the Philadelphia area offers a relative affordability advantage compared to the national landscape, the dream of homeownership remains difficult for many. The persistent gap between income levels and housing costs continues to shape the market, leaving many prospective buyers struggling to keep up.

For more insights into the latest real estate trends in Philadelphia and beyond, contact our team today.

Sources: Philadelphia Inquirer, January 6, 2025.