T
he Philadelphia metropolitan area is experiencing a decline in affordable housing options, making it difficult for buyers with lower to moderate incomes to find homes within their budget. According to an analysis of listings on Realtor.com, only 27% of homes for sale in March were affordable to buyers earning $75,000 per year, down from 28% the previous year. This represents a significant decline from 44% of listings that would be available if the share of affordable homes matched income distributions.

    The report found that the Philadelphia metro area was one of 26 areas nationally where homes on the market at the start of spring were less affordable than last year for buyers across incomes. The analysis by the National Association of Realtors and Realtor.com also revealed that thousands of listings were missing at various income levels, including $50,000, $75,000, and $100,000.

    The report categorized metropolitan areas into three groups based on how well homes for sale aligned with income distributions. The Philadelphia area fell into the "areas falling further behind" category, where fewer affordable homes were available this March than last year, and there's a growing gap between the share of affordable homes by income level and what would be available in a proportionate market.

    Across the country, more homes have been listed for sale this year, but many are still priced out of reach for low- to moderate-income households. Realtor.com's chief economist, Danielle Hale, noted that while progress has been made in some areas, it's not happening everywhere and is concentrated in the Midwest and South.

    In the Philadelphia metro area, buyers earning $35,000 per year could afford only 5.5% of homes for sale in March, while those earning $50,000 per year could afford 12.3%. The report highlighted a significant gap between the share of affordable listings available and what would be expected in a proportionate market, with thousands of listings missing at various income levels.