P
hiladelphia Mayor Cherelle Parker's 2025-26 budget proposal includes an $800 million loan for housing and the elimination of a 1% construction impact tax. The city will borrow this amount over five years to build or preserve 30,000 units across Philadelphia.

    The proposal also allocates $11 million in additional funding for the Department of Planning and Development to support hiring 32 new employees. Parker aims to simplify the tax structure by eliminating certain taxes rather than altering abatements.

    Notably, the budget does not extend a 10-year tax abatement for conversion projects, which was previously proposed. The city's next major housing initiative is scheduled for March 24th.

    The real estate industry will closely follow the city's budget process over the coming months. Parker's proposal includes reducing the city's wage tax and business income and receipts tax.