Single Women Renters VS Men Renters: Who's Better Off?
Hapco Philadelphia has seen the number of solo renters rise along with interest rates that have made home ownership less affordable.
But how do women renters stack up against men renters when it comes to the percentage of their income spent on rent.
The New York Times looks at a recent study to see who’s more rent burdened.
Fewer Renters Competing For Available Apartments, New Study Says
Hapco Philadelphia just got RentCafe.com’s new 2023 Year-End Report, which looks at the most competitive rental markets in the U.S. this year.
Many rental markets analyzed in their report showed signs of softening in 2023, with fewer renters competing for each available rental or apartments staying vacant for longer.
Philadelphia also experienced these shifts but remained competitive with 9 prospective renters per vacant unit and a higher-than-average lease renewal rate. Competition in the suburbs was even fiercer, ranking 8th in demand in 2023, while Philadelphia made it to 33rd place out of the 139 markets analyzed.
Here are the metrics that contributed to Philadelphia’s and Suburban Philadelphia’s rankings:
- In 2023, 9 prospective renters competed for each vacant apartment in Philadelphia this year, on par with the national average. In the suburbs, however, this number stretched to 11 people per vacant unit.
- To make apartment hunting more challenging, 65.6% of apartment dwellers in Philadelphia, and 75.4% in Suburban Philadelphia renewed their leases. In both cases, the percentage of renters choosing to stay put surpassed the national benchmark of 60.2% in lease renewals.
- While in Philadelphia proper the occupancy rate stabilized at 92.6%, in the suburbs it has reached 94.7%, slightly higher than the U.S. average occupancy rate of 94%.
- The modest rise in new apartments built this year further kept Philadelphia competitive. The metro added 1.15% more units to its inventory in 2023 (compared to the national 1.89%), clearly not enough to meet the growing demand. Suburban Philly has seen an even lower share of new units this year, at 0.90%.
- Consequently, apartments in both markets stayed empty for 41 days before welcoming new renters. For context, the average American apartment got filled in 38 days.
- What about Pittsburgh? Each vacant apartment here attracted 7 prospective renters, especially as 65.9% of apartment dwellers renewed their leases, pushing occupancy rate to 94.1%. Moreover, this market has seen a mere 0.24% increase in recently built units, not offering enough rental options for apartment hunters. Thus, apartments got occupied in 39 days, on average.
To identify the hottest rental areas of the year, we analyzed Yardi Systems apartment data for 139 rental markets based on occupancy rates, the number of renters applying for an available unit, vacancy days, the percentage of renewed leases, and the share of new apartments. Based on these metrics, we then calculated a Rental Competitivity Index (RCI) score, which shows how competitive the rental market was in 2023.
Find out how Philadelphia compares to other in-demand rental markets nationwide by reading our full 2023 Year-End Report:
And if you want to see what renters are looking at to get the best value for their money check out RentCafe's recent study on apartment space, showing what $1,700 can get them in Philadelphia.
City Adds New Zip Code To Renters' "Right To Counsel" Program
CITY EXPANDS RIGHT TO COUNSEL INITIATIVE TO SERVE MORE RESIDENTS LIVING IN POVERTY AND FACING EVICTION
Two New Reinvestment Fund Studies Show Impact of City's Eviction Diversion and Right to Counsel Initiatives
December 2023-PHILADELPHIA –Today the City announced that another zip code has been added to the existing four zip codes currently served under the Right to Counsel (RTC) initiative managed by the Division of Housing and Community Development (DHCD). Since October 2023, low-income renters living in 19132 have been entitled to free legal representation through this City benefit program. DHCD also manages the City’s Eviction Diversion Program (EDP).
Renters can already receive RTC services if they live in 19134, 19144, 19139 or 19121. The addition of 19132 brings the total to five zip codes where expanded free legal counsel is available for tenants facing eviction. Philadelphians in the covered zip codes with incomes at or below 200 percent of the Federal Poverty Level are eligible for RTC. Immigration status does not affect eligibility.
This expansion builds on the success of the initial rollout. The zip codes were selected by the City based on the results of the Reinvestment Fund’s analysis of need (eviction volume) and likely uptake (eviction filing rate and family poverty). The same methodology was used to select the latest zip code. The percentage of tenants receiving legal representation in RTC zip codes is expected to grow as tenants become more aware of this vital resource.
In FY24, Mayor Kenney made a historic investment in RTC, investing $28 million in the program through the Five-Year Plan, which allows for scaling and sustainment of the program.
“Evictions overwhelmingly impact women and children, lead to greater levels of poverty and poorer housing conditions, and negatively affect the community as a whole,” said Eva Gladstein, First Deputy Managing Director. “I am grateful to DHCD and partner organizations for continuing to grow this important program that supports tenants, levels the playing field in Landlord-Tenant cases, and limits disruptive displacements.”
“DHCD is proud to oversee the Eviction Diversion Program and Right to Counsel for the City of Philadelphia and its residents,” said Melissa Long, Director of DHCD. “For over 40 years we have been on the frontline of housing needs in our city. Helping tenants and landlords reach agreements and giving access to free legal services to tenants in dire circumstances is an extension of our mission. I am pleased at the work we’ve done, and as we continue to work with our legislators at the local, state, and federal levels and to explain the need for additional funding for EDP and RTC, we can help even more tenants access housing they can afford.”
“City Council is committed to continuing its support of the Eviction Diversion and Right to Counsel programs,” said Council President Darrell L. Clarke (5th District). “The most important affordable home or apartment that anyone can ever have is the one they already live in. And providing deserving Philadelphians with legal assistance to hopefully avoid eviction and to stay in their homes or apartments is an essential service that City Council supports strongly.”
Eligible renters have a Right to Counsel when facing:
- Eviction proceedings
- Administrative proceedings that could lead to the termination of the tenancy or eviction
- PHA housing subsidy termination proceedings
Right to Counsel is available for judicial proceedings (e.g., in Municipal Court) and administrative proceedings (e.g., in front of the Fair Housing Commission).
“We are grateful to the Mayor and City Council for their continued support of Right to Counsel and our other successful eviction prevention initiatives, which have made Philadelphia a national leader in stabilizing families and communities,” said Kadeem Morris, Co-Managing Attorney, Housing Unit, Community Legal Services (CLS). “Evictions are incredibly traumatic. Families become trapped in poverty, and experience disruptions in education, job loss, and adverse physical and mental health outcomes. However, when tenants have access to expert legal aid and other interventions, such as eviction diversion, communities are safer and healthier, children and families have more stability, and people across our city have greater opportunities to thrive. Thank you to the Mayor, City Council and DHCD for their commitment to preserving Philadelphia communities through homelessness prevention and expanded access to justice.”
DHCD worked with the Reinvestment Fund to review and analyze EDP and RTC.
The studies can be found here:
- EDP Study
- Highlights:
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- This report only looks at two phases of EDP. Since the time of this study there have been changes to the program including the introduction of a financial component called Targeted Financial Assistance (TFA).
- EDP gives landlords and tenants involved in a dispute the opportunity to resolve their issues without going to court. This benefits the tenant by avoiding a filing on their record, the landlord by avoiding high turnover costs, and the court system by lessening the burden on an already crowded docket.
- This evaluation demonstrated that EDP played a role in curtailing eviction filings as the City emerged from the pandemic.
- Recording an agreement through EDP was associated with notably lower eviction filing rates than cases in which no agreement was achieved.
- Receipt of rental assistance appeared to be an important factor in whether an EDP case experienced a subsequent eviction filing, regardless of participation in mediation or reaching an agreement.
- Further study is needed to understand the impact of TFA and the long-term impact (of EDP on housing stability.
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- RTC Study
- Highlights:
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- This report only looks at the first two zip codes. RTC has expanded since this study was done.
- RTC expands access to justice and reduces the trauma of disruptive displacements. RTC is one piece of eviction prevention services, including EDP.
- The demographics of tenants receiving legal services were generally reflective of the populations disproportionately experiencing eviction, particularly Black women.
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Tenants can go to phillytenant.org or call the Philly Tenant Hotline at (267) 443-2500 to access Right to Counsel and related services. Legal representation and support will be provided by Community Legal Services, SeniorLAW Center, Legal Clinic for the Disabled, Philly VIP, and the Tenant Union Representative Network.
To learn more about Right to Counsel and the recent study, please visit: https://www.phila.gov/services/property-lots-housing/get-free-legal-help-to-avoid-eviction/
To learn more about Eviction Diversion and the recent study, please visit: https://eviction-diversion.phila.gov/#/
For more information on DHCD, please visit phila.gov/dhcd
PA Home Repair Program Has No Shortage Of Applicants, Or A Waitlist
Hapco Philadelphia backed the Whole-Home Repairs Program when it passed at the State Capitol in Harrisburg.
It allows rental property owners and homeowners to apply for grants for basic property repairs and energy efficiency improvements.
The program has proven so popular there’s a waiting list for rental property owners seeking assistance.
Winter Rents Edge Down Slightly In The "Off Season"
‘Tis the season for cheaper apartment rents
Like the for-sale housing market, the rental market has its seasonal ups and downs.
More renters tend to move in the spring and summer, and fewer move in the fall and winter. The rents that landlords ask new apartment tenants to pay tend to fluctuate with renter demand.
“If you’re looking to have a little more leverage on pricing, now is definitely the time of the year for that,” said Chris Salviati, senior housing economist at the rental search website Apartment List.
Renters searching for homes now are more likely to find prices that are a bit lower and perks such as a month or two of free rent or deals on parking.
Last year and this year, typical asking rents in Philadelphia hit their lowest levels around January, according to Apartment List. Prices peaked in the summer.
Asking rents across the country tend to fall from September through December and sometimes January, and then they start to rise, according to Apartment List’s rent estimates from 2018 through November 2023. Rents often fall the most in November.
In Philadelphia, the median asking rent last month — $1,236 — was down just over 2% from peak prices in June and July, according to Apartment List. That means renters could have saved $27 per month or $324 per year paying the typical rent in November vs. in the peak months.
Asking rents this year didn’t rise as high and haven’t fallen as fast as last year. Rents fell by nearly 6% during the market’s last offseason.
So if renters are able to control the timing of their lease, they can save a few bucks. But because fewer renters move this time of year, fewer apartments are available for the ones who are searching.
“You might not find quite as many options, but if you do find something that works well for you, you can often find a little bit of a deal,” Salviati said.
Philadelphia’s median asking rent fell 0.5% in November, a little less than the national drop of about 1%. But the city is holding onto its reputation as affordable compared to other big cities. Of the country’s 100 largest cities, 68 had typical rents last month that were more expensive than in Philadelphia.
The typical asking rent in the city last month was about 8% lower than in the country as a whole. The median rent was $1,115 for a one-bedroom apartment and $1,299 for two bedrooms.
“It has been a real roller-coaster over these last few years,” Salviati said.
Asking rents rose rapidly across the country from 2021 into 2022, but prices dipped a bit this year, he said. Still, “nothing that would be close to offsetting the price growth we saw in the preceding years.”
Consumers have not been feeling confident about the economy over the last few months, although that trend reversed recently. The lack of confidence has held people back from forming new households and helped slow demand for new rentals, Salviati said. If next year, public sentiment catches up with positive economic signs, demand might bounce back.
At the same time, nationally, a near-record number of rental units are in the construction pipeline, and next year, the most new apartments are set to hit the market in decades, Salviati said. Philadelphia has had a burst of apartment development in recent years.
New supply explains why asking rents are down nationally compared to last year, and it should help keep asking rent growth in check. Salviati predicts around 2% growth nationally.
mbond@inquirer.com
Michaelle Bond
215-854-4546
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