New Study Says In Philly It's Cheaper To Buy Than Rent
HAPCO Philadelphia says a new study out by Redfin that claims it’s cheaper to buy than you rent in Philly is flawed and makes faulty assumptions.
HP President Greg Wertman examined Redfin’s methodology outlined in their study.
“They are comparing a monthly mortgage of $1,869 to a monthly rent payment of $2,000. A $1,869 payment means the house cost less than$280,000 with 5% down. And that doesn’t include PMI costs,” Wertman finds. “That means the house costs less than $250,000. Good luck finding that in a decent neighborhood.”
Wertman goes on to say, “The only city that it makes sense to buy in is Detroit, which I just visited. It used to have a population of almost 2 million. Now, it’s around 677,000.”
HP’s President also says as you read the study, keep in mind that sources like Redfin and Zillow are using information that is readily available through other platforms.
“It’s one of the reasons why Zillow was sued in California a number of years ago for providing information that undersold certain neighborhoods and residences,” Wertman notes.
Philly Rental Market Still Desirable In New Survey
Even with endless City Council taxes, fees, costs, and regulation, Philadelphia’s rental market still fares well nationally and regionally, even beating out NYC!
HAPCO Philadelphia looks at the new May survey just out from bloggers at RentCafe.com
It ranks Philly rentals the most sought-after in the Northeast, four spots above Manhattan.
And nationally, the RentCafe survey has Philadelphia in the 13th most-desirable spot, with Kansas City, Missouri ranked as most-desirable.
These are the metrics that pushed Philly high on the list:
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Apartment hunters have favorited four times more listings (up 425%) compared to this time last year.
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The number of personalized searches for Philly apartments saved has increased by 80%.
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Wannabe renters have viewed 14% more listings in the city.
If this all seems too-good-to-be-true given the struggles facing the city’s rental and investment property owners, HAPCO Philadelphia says take a look and see if you agree with RentCafe’s methodology.
City Continues Push To Enlist More Housing Choice Voucher Rental Owners
As one of the largest providers of affordable rental housing to the City’s Housing Choice Voucher Program,
HAPCO Philadelphia urges its members to explore the financial incentives and benefits of signing up.
The Philadelphia Housing Authority offers classes on how to be a part of the HCV program.