Report

Market Snapshot Philadelphia Q1 2025

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Market Overview

Philadelphia’s multifamily market recorded its second-strongest Q1 absorption on record in early 2025, with nearly 2,950 units absorbed—outpacing deliveries by more than 1,000 units. Average rents rose by 2.1% year-over-year to $1,791, reflecting a steady shift from stabilization to growth. Occupancy held firm at 94%, just below the 10-year average, indicating balanced fundamentals. Notably, construction activity has slowed, with under 10,000 units underway for the first time since 2017. With slowing deliveries and growing renter demand, conditions are tightening across the metro, especially in suburban areas like Lower Gloucester County and Upper Burlington County, where effective rent growth exceeded 5%.

About MMG

MMG Real Estate Advisors is a national investment sales and advisory firm focused exclusively on the multifamily sector. The firm combines deep transactional expertise with market research to guide investors, owners, and developers across the U.S. MMG’s quarterly reports offer a detailed view of leasing trends, capital markets, construction activity, and submarket performance. Their insights help clients navigate local dynamics, from rent shifts to supply constraints, in metros like Philadelphia—empowering smarter investment decisions grounded in real-time data.

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