Center City Housing Report
Center City District & Central Philadelphia Development Corporation
Center City Housing Report
Center City District & Central Philadelphia Development Corporation
Front Cover: The Josephine, 1620 Sansom Street
Center City
Core Center City
Extended Center City
Pine St.
Tasker St.
Girard Ave.
New Jersey
Greater
(Core + Extended)
Extended Center City
Greater Center City is the fastest growing area of Philadelphia, accounting for 44% of all housing completions in 2024 despite making up less than 6% of the city’s total land area, with the year-end total exceeding 2023 by nearly 1,000 units. After several decades of population growth that has outpaced the city’s overall growth, one in eight Philadelphians –12.5% – now live between Girard Avenue and Tasker Street between the two rivers.
Above: Jessup House, 1134 Sansom Street
Key Takeaways
44% of citywide 2024 housing unit completions are located in Greater Center City.
Introduction
One quarter of all new housing units in Philadelphia in 2024 are located within the 19123 ZIP code alone.
Center City’s historic increase in housing production was spurred by the 10-year tax abatement, incentivizing the creation of new construction and conversions. A reduction of the abatement’s overall value went into effect at the start of 2022, which triggered an unprecedented surge in permit applications leading up to the end of 2021. Projects approved under the original abatement formulation are required to receive a certification of occupancy within five years to receive its full financial benefits. Dozens of projects have moved forward to meet this deadline, but a substantial number of permitted
Cellphone data suggest that core Center City’s population grew by another 3% in 2024, whereas the city overall grew by just 0.2%.
projects remain approved without any subsequent construction. Larger-scale projects not yet begun are unlikely to meet a December 2026 completion deadline.
Notably and importantly, the full value of the original 10-year tax abatement remains in place for conversion projects. Several significant conversions are underway and proposed throughout Center City, which can help to address the supply side of the office space conundrum that Philadelphia and all large cities are facing.
Population Change 2019-2024
Greater Center City’s population has increased by more than 9,000 people since 2020.
Source: Placer
Housing Completions, 2024
The eight ZIP codes of Greater Center City account for 44% of 2024 housing completions in Philadelphia.
Housing Production
In 2024, Greater Center City added 3,811 units, exceeding last year’s high of 2,844 units. This represents 44% of the approximately 8,000 unit completions across the City of Philadelphia in 2024. As was the case in 2023, the ZIP codes of extended Center City—the areas immediately north and south of the core—experienced the majority of housing production. In fact, three quarters of Greater Center City housing units completed (2,860) are in extended Center City ZIP codes. Strikingly, 2,000 of those units are within the 19123 ZIP code alone, accounting for a full quarter of Philadelphia’s new units last year. This geography contains several rapidly developing corridors, with the Delaware River waterfront from Callowhill Street to Penn Treaty Park being the most active. Spring Garden Street and North Broad are other areas of intensifying development.
While the momentum of extended Center City is undeniable, 2024 saw 950 units completed in core Center City (Pine to Vine streets, river to river). Jessup House developed by Greystar and 210S12 (210 South 12th Street) developed by Midwood and were significant additions east of Broad Street in 2024. Both buildings have over 300 units with ground floor retail. West of Broad, Southern Land Company’s The Josephine added 254 luxury apartments to Center City.
Outside of core Center City, developers have clustered new projects along North Broad Street, Spring Garden Street, and Washington Avenue. Notable completions include The Noble at 200 Spring Garden developed by National Real Estate Development. Three blocks east, The Alcott, another Southern Land Company project, welcomed its first residents in late 2024.
Several medium-sized projects are located on Broad Street between Fairmount and Girard avenues. The largest of these, the Lyle on North Broad, will add 171 residential units. The first phase of the One Thousand and One Residences development is nearing completion at Broad and Washington, featuring luxury amenities and 600 rental units out of a planned 1,400.
Number of Completed Units by Year in Greater Center City
Large projects like this help bring major retailers to Philadelphia. New tenants such as Lidl opening at the Lyle, City Fitness at the Noble, and Austin based restaurant Uchi at The Josephine are examples of ground floor retail tenants that contribute to vitality on the street level.
In 2021 many development projects received permits as developers sought to receive the 10-year tax abatement before the program began to phase out. Out of the 60 projects with over 100 units, 39% are completed, 23% are in progress, and 38% have not started.
The number of new housing units in Greater Center City is the highest of the past five years.
Number of Completed Housing Units by Year in Greater Center City
The current number of new housing units in Greater Center City is the highest of the past five years.
Housing Permits Issued, 2024
ZIP codes north of Center City, particularly along the Market-Frankford Line [L], have the most active housing construction permits.
Conversions
Philadelphia remains a nationwide leader in office to residential conversions, with over 9 million square feet of office space transformed to alternative uses since 1997. Though the most easily convertible candidates are fewer and farther between, there are several projects in the pipeline delivering more than 900 new apartment units, with more in the proposal stage.
The Bellevue: Lubert-Adler is nearing completion on a complete redevelopment of the building, including a refurbishment and modernization of the adjacent Sporting Club. Most of the office floors within the historic hotel have become 155 apartments, while the existing hotel operations and retail spaces are being updated. Mr. Edison, famed restaurateur Jeffrey Chodorow’s first foray into Philadelphia’s dining scene, is slated to occupy the ground floor.
1701 Market: Now called 17 Market West, this 300,000 square foot office tower formerly occupied by Morgan Lewis will welcome its first residents this summer into 299 apartments. Major retail spaces front on both Market Street and JFK Boulevard. The building will bring residents to the core of the office district.
3 Parkway: A partial conversion is underway following Drexel’s departure from the building that left half of its floors available. The other half of the building can and will remain office space, thanks to multiple elevator banks that can provide adequate service for both uses. The building will add 175 units to the residential density of the Benjamin Franklin Parkway, joining the adjacent redevelopment of GlaxoSmithKline’s former Center City office space into what are now 600 units at Franklin Tower.
The Bourse and 400 Market: Lubert-Adler is also behind the reinvention of these key assets adjacent to Independence Mall. 400 Market will be a more straightforward conversion from office space into 176 rental apartments, while architecturally distinctive Bourse building will become a mixed-use hub that combines some office space with hotel rooms, dining, and retail.
2100 Arch: MM Partners is transforming the former Jewish Federation building into 116 apartments, infusing the Logan Square neighborhood with more rental options that offer a short walk into the West Market Office District. The property is just two blocks from PMC Property Group’s three towers along the Schuylkill River which have filled in the skyline and added a destination supermarket to the neighborhood.
Ten Penn Center: Recently marketed for sale, this commodity Class A office building has the potential to be partially converted into residential units, according to the property’s sales materials. Conversion is not a foregone conclusion but if a buyer opts to move forward, more than 300,000 square feet of obsolete office space could be removed from the inventory.
Left: 210 South 12th Apartments, 210 S 12th Street Right: Jessup House, 1134 Sansom Street
Population
Greater Center City’s population increased by 27% from 2011 – the oldest ZIP code Census Bureau American Community Survey (ACS) data available – to 2023. Within this central geography, housing production has largely kept pace with population growth, aligning new supply with growing demand. By contrast, the City of Philadelphia has seen more housing production than population growth, which have grown 10% and 4% respectively over the same period.
Data from Placer.ai allows for more recent population analysis. The platform aggregates anonymized cellphone location data to provide monthly estimates on migration and population based on changes to home locations. According to Placer, Greater Center City’s population increased by 1.5% in 2024, with core Center City having a 3% increase. However, Philadelphia’s population has remained relatively flat, increasing by 0.2% in 2024. Placer’s migration estimates suggest that the trend observed since 2011 continues apace: the urban core continues to attract new residents at a much faster pace than the city overall.
The IRS also provides information on moves based on the home locations of tax returns. There is a delay in reporting as returns are not filed until April of the following year. Nevertheless, these data offer one way of validating the cell phone data. On a citywide level, Placer.ai and the IRS report similar migration trends showing a negative net migration overall. On a location basis, Philadelphia loses the highest number residents to its immediate suburbs. However, Philadelphia gains movers from New York, Baltimore, and Washington.
Within Center City, the population of college educated young professionals has increased. Over 80% of residents in core Center City have a college degree, and 48% are in the 22-34 range. Over the last decade, Greater Center City has grown the share of younger population, with 39% of residents between the ages of 22-34, up from 32% in 2011. Educational attainment has risen sharply as the population of younger residents has grown. In Greater Center City alone there are nearly 44,000 additional advanced-degree-holding residents compared to 2011. This increase represents about 30% of Philadelphia’s overall growth in highly educated residents. All told, the city now contains 149,000 more highly educated residents than it did in 2011.
According to the most recent ACS data from 2023, there were 116,553 total housing units in Greater Center City. Households are generally larger in extended Center City with a greater presence of school-aged children, while there are more single and empty nester households in the core.
The growing population in and around Center City reinforces the mixed-use ecosystem. The closer a person lives to work, the more likely they are to return to the office. Workers living 0-2 miles away from Center City returned at a rate of 88% of 2019 volumes. Center City’s population also provides a strong talent pipeline for employers.
Percentage Change in Population and Housing Units, 2011–2022
The number of housing units grew at a similar rate as populaton in Center City and is much faster than the growth in Philadelphia as a whole
Percentage Change in Population and Housing Units, 2011-2022
The number of housing units grew at a similar rate as population in Center City and is much faster than the growth in Philadelphia as a whole.
Source: Census Bureau, 2022 American Community Survey, five-year estimates
Population and Housing Characteristics: Center City and Philadelphia
and Housing Characteristics: Center City and Philadelphia
Source: 2023 American Community Survey, five-year estimates
Existing Supply
Greater Center City’s rental market has remained strong through the last three years.
Rental Market
Most new units exist within multifamily properties. A substantial increase in rental supply will temporarily affect measures of rent and occupancy. Adding new units can potentially increase vacancy rates when large projects reach the market.
According to CoStar, which analyzes multifamily properties, absorption remains strong. This is a measure of change that accounts for new construction, demolitions, move-ins and moveouts. In fact, net absorption in 2024 was the second highest of any year in the past decade, with 2,400 more units occupied at year-end (2021 saw the most units absorbed with 4,041). All told, more than 17,500 units have been absorbed across Greater Center City in the last decade.
Despite strong absorption, occupancy can fluctuate with major changes in supply. Core Center City’s occupancy continues to hover near 92%, maintaining this level for the last three years. However, extended Center City’s occupancy fell to 83%, bringing Greater Center City’s total to 87%. Extended Center City’s occupancy levels are most impacted by ZIP codes 19123 and 19147. These ZIP codes have experienced historic levels of production, with over 3,000 net units delivered in 2024, and both have occupancy levels below 80%. It remains to be seen how long it may take to backfill the wave of new units being added to the market.
Average rents remained stable throughout the year without much growth. According to Zillow’s rent index, which normalizes all rental sizes, the average rent for Greater Center City is $1,949. Core Center
Net Absoprtion
City rents remain higher than extended ZIP codes, though the gap between the two has shrunk as new class A development continues in the extended neighborhoods.
For Sale Market
The for-sale market has slowed since peak activity in 2021. According to Redfin, the number of home sales in Greater Center City reached a total of 2,721 as of December of 2024, a 2% decrease from the year prior. The median sale price for most ZIP codes in Center City has increased from 2023, except for 19146. National trends such as elevated mortgage rates and low supply contribute to the slowing of home sales and availability. By the end of 2024, the average 30-year fixed mortgage rate in the U.S. was 6.85% compared to the low of 2.65% in January 2021 according to the Federal Reserve Bank of St. Louis.
Center City’s condo market continues to face challenges, with the for-sale market slowing down. Similarly, the number of condo and co-op sales has declined since 2021. In recent years, condo construction has decreased, with Arthaus and The Laurel, completed in 2022 and 2023, being the most recently built developments. However, several older condo buildings, such as The Philadelphian in Fairmount and Hopkinson House in Washington Square, both constructed in the 1960s, have undergone significant renovations to remain attractive to new residents.
Absorption, Center City Multifamily Housing (units) Absorption is a measure of change that accounts for new construction, demolitions, move-outs, and move-ins.
Center City Occupancy
Nearly 3,000 units delivered in Extended Center City this year, creating a wave of new supply that’s driven down occupancy relative to Core Center City.
Rents have continued to increase, growing to an average of $1,996 for Greater Center City
Zillow Observed Rent Index, 2019–December 2024 Rents in Greater Center City continue to outperform both the City and the Region. The likelihood of return to the office decreases the farther an employee lives from downtown.
Source: Zillow
Source: CoStar
Rendering of West Park, 4401 Holden Street, courtesy of OCF Realty.
University City Flats at 4030 Baring St. in West Philadelphia, a 44-unit building of all four-bedroom units that PHA bought and will transform from student apartments to affordable housing. Courtesy of The Philadelphia Inquirer, Elizabeth Robertson / Staff Photographer.
Affordability
Housing affordability is relative to household income. Philadelphia continues to be a bargain relative to neighboring and comparably dynamic urban markets. According to Zillow as of December 31, 2024, the average rent in Philadelphia is $1,703, 41% less than the average rents of New York, Washington, Boston, and Chicago. New York City presents a unique opportunity given its proximity, inflated cost of living, and the fact that many jobs enable hybrid or fully remote work arrangements. Stories of transplants making the trip once weekly or a few times a month are increasingly common, and the latest data from Zillow confirms that Philadelphia is the most frequently searched among its users looking to relocate.
Focusing on our existing residential base, however, renders our relative affordability irrelevant given that over half of all renters in Philadelphia citywide are cost burdened. American Community Survey data for 2023 reveal that a majority of Philadelphians (52%) spend more than 30% of their incomes on housing costs, a figure that increased by 3% year-over-year.
Mayor Cherelle Parker recently announced the Philadelphia Housing Opportunities Made Easy (H.O.M.E.) initiative, the goal of which is to produce 30,000 units of housing by the end of her first term. The initiative seeks to ramp up housing production, preservation, and refurbishment across all price points, with the public sector and non-profit developers playing significant roles.
Additional details will be unveiled during spring budget hearings, but a significant expansion of housing supply will be a highly effective way to keep pricing in check. Philadelphia has already proven this point in recent years, having delivered more housing units since 2020 than Boston and San Francisco combined, and a number nearly equal to Chicago, a city with a population one million people larger than Philadelphia.
In the meantime, there are numerous developments and redevelopments underway in and around Greater Center City that will add to the supply of mixed-income housing options:
Brewerytown Homeownership
59 homes rehabilitated by the Philadelphia Housing Authority (PHA) with pricing ranging from $190,000 to $240,000.
Blumberg Homeownership
PHA is developing 67 units in Sharswood in partnership with Civetta with a maximum price of $280,000.
Turn the Key in West Poplar
Philadelphia Housing Development Corporation (PDHC) is building 54 two- and three-bedroom homes in this neighborhood north of Center City with a maximum sale price of $250,000.
University City Flats and Legacy at Powelton
PHA has acquired two student housing buildings near Penn and Drexel’s campuses and will redevelop them into affordable units as current leases expire. The two projects currently contain 74 apartments.
Westpark
By far the largest of the projects listed, this decades-old complex will yield 1,000 renovated units in high-rises originally built during the urban renewal era, with additional low- and mid-rise buildings added onto the site to add density. New connections to the street grid and the adjacent L station and grocery store will better integrate the site into West Philadelphia.
Source: CoStar
Looking Ahead
2025 will be a significant year for the Greater Center City housing market. The unprecedented volume of new unit deliveries, particularly within the 19123 ZIP code, will lengthen lease-up periods and keep rent growth and occupancy numbers lower – at least within select neighborhoods. Meanwhile, core Center City will see multiple conversion projects wrapping up and getting started, contributing critical new units in the more cost-prohibitive and land-constrained areas of downtown. Details about additional conversions, such as in portions of the Wanamaker Building, may come into focus as the year goes on.
Projects that have been unable to secure financing or otherwise kickoff after securing permits under the former 10-year tax abatement may either race to completion or fade away as those entitlements sunset. Ongoing challenges in the office sector may spur new policy discussions around ways to facilitate conversion and redevelopment at scale and with greater speed.
In the near term, deliveries are expected to drop as the number of projects underway declines. 2025 will likely see approximately one third as many units come online as in 2024, building an opportunity for the rental market to play catch-up. Macroeconomic factors remain favorable to strong apartment performance, including stubbornly
high mortgage rates, historically low supply of units for sale, and rising costs that keep an increasing share of the populace out of the housing market.
The opportunity for Philadelphia is to strengthen its performance as a target market for those from more competitive and costly cities, begetting a beneficial cycle: high-quality housing units help attract and retain new residents, which grow Greater Center City’s spending power and talent pool, teeing up greater demand for retail and restaurants and making a more compelling case for office-occupying firms to stay, move, and grow here.
PMC Property Group’s project at 2301 John F Kennedy Blvd nears completion between JFK Boulevard and SEPTA tracks, adjacent to PMC’s existing Riverwalk complex.
Report Team
This report was researched and written by Lauren Smith, Manager of Economic Development, and Clint Randall, Vice President of Economic Development, and designed by Bryant Gosnell, Graphic Designer, and David Orantes, Art Director. The 2025 Housing Report team also includes Jessie Brain, Manager of GIS; Amy Genda, Vice President of Strategy and Design; Prema Katari Gupta, President and CEO; Adrianna Morsey, Research Assistant; JoAnn Loviglio, Vice President of Communications and Public Relations; Leo Manning, Director of Strategic Communications; Jimmy Salfiti, Retail Economic Development Manager; Bonnie Thompson, Senior Director of Digital Marketing; and Emma Witanowski, GIS Intern. Drone photography by Christopher L. Rivera.
CPDC Members
We are grateful for the ongoing support of Central Philadelphia Development Corporation members, who make reports such as this one possible. For more information on CPDC and how to join, visit joincpdc.org
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