Redfin’s recent real estate report found that buying a home is cheaper than renting in the Philadelphia region. City Cast Philly spoke to Michaelle Bond, the urbanism reporter at the Inquirer, about the pros and cons of buying or renting a home in Philly.
What's the price difference here?
“It depends on the month really, or the quarter we're talking about. Because last year, renting was more affordable in certain circumstances in Philadelphia and other counties. And now fast forward to March 2023 and it's a little bit cheaper to buy rather than rent, by about $130 per month, which does add up. So it's not nothing. And so we're not talking about a huge amount — we're talking slightly cheaper.”
What are Philadelphians typically paying for rent and mortgage? And how does that compare to other cities in the U.S.
“In Philadelphia, our monthly rent was about $2,000 and the monthly mortgage payment was 1,869.
“[In the U.S.,] the typical rent is $2,715. The typical monthly mortgage payment was 3,385. So that's a difference of $670 per month."
If I'm a first-time home buyer, is it really easier for me to actually buy a home in Philly?
“That's a good question because with this Redfin analysis, they looked at monthly costs of owning versus renting, and that's a very basic way to look at housing costs. Because we all know that as a homeowner, it's not just your monthly costs you need to worry about. And one thing that is a really big barrier for a lot of folks, especially first-time house buyers, is the down payment. Philadelphia has a program called Philly First Home, where you can get up to $10,000 towards your initial cost.”
Want to dive deeper? Hear more from Michaelle about buying and renting in the city 🎧
