Philadelphia’s evolving housing spectrum has new players, blurring the lines between traditional options
Following evolving urban housing trends nationally, Philadelphia has recently seen a surge in new housing and hospitality options.
September 25, 2019
- Following evolving urban housing trends nationally, Philadelphia has recently seen a surge in new housing and hospitality options, which blur the lines between the traditional incumbents across single-family homes, apartments and hotels. In terms of residential, new options seek to incorporate a hospitality-centric mindset, removing the common frictions brought on by furnishing your living space, managing bills, finding roommates and integrating into the community.
- Furnished apartments have greatly expanded in Philadelphia this year, with national providers now accounting for more than half of the units currently open (354 of the 666 open furnished apartment units). Recent announcements by venture capital backed national providers Sonder and Stay Alfred could add another 719 units across eight different properties across the CBD by 2021. Co-living providers and Micro-Hotels have also entered the fray here in Philadelphia, with 2019 being the first year that we saw either option in Philadelphia, with openings such as Bungalow locations in Spruce Hill and Northern Liberties and the Pod Hotel at 19th and Ludlow.
- To date, while most of these new entrants have located close to or within the CBD, these new living options are increasingly popping up in vibrant neighborhoods adjacent to the CBD with projects such as Sonder’s The Queen in Queen Village and Quarters Co-living in Northern Liberties. With the respective investor types that back each of the options outlined in our housing spectrum continuing to show interest in Philadelphia, we anticipate further development and expansion across Greater Center City and expect that the incumbents will be joined by new to market national providers that have yet to locate here.
Source: JLL Research, ESRI, CoStar