Earlier this month (March 4, 2015), Forbes posted another article in a continuing series of “TOP Rated” articles. This time it wasn’t about top places to eat, retire, the best vitamins or even most popular cities. Rather it became personal as Philadelphia was called out as one of 25 cities by Forbes in their “America’s Most Overpriced Cities In 2015.”
It should be expected that Philadelphia would rate high on the list of places to live, work and own a home since it’s a top ten MSA (Metropolitan Statistical Areas) in the country. Yet this report goes a little deeper as it also weighs prices for homes sold against income levels of a city to determine affordability. This is a good approach and is worth reading the Forbes article.
Where does Philadelphia, PA
rate on the list? NUMBER 24.
That’s right, Philly just made the top twenty five overpriced city list. While this may be a relief to some it wasn’t number one or two, as a local real estate agency concerned with home values and affordability, it got us digging deeper for answers.
|#24 Philadelphia, Pennsylvania|
|Median Home Sales Price:||$212,000|
|Cost Above National Average:|
To put this in comparison against the most overpriced city (Honolulu, Hawaii with a median sale price of $509,000), Philly’s affordability is 69.4% while Hawaii was 35.3% – where lower the affordability, the more expensive it becomes. And if you’re interested, New York ranked 4th with 24.7% of housing affordable to residents making the a median income of $65,488. So back to the question – is Philadelphia Overpriced? Simply, not as much as may would consider.
Source: Forbes, Housing Opportunity Index (National Association of Home Builders) and Wells Fargo.