T
he Philly area is often considered an affordable market, but Zillow now ranks it as one of the country's hottest going into 2025. What makes the Philly metro area hot? The answer lies in fierce competition among homebuyers. This is due to a lack of action by local authorities compared to other major metros.

    When Sanziana Penafiel and Mark Washington, both first-time homebuyers, entered the market, they faced discouraging messages about the tough competition. However, they persevered and witnessed firsthand the intense bidding wars in South Jersey neighborhoods. "It was incredibly overwhelming," Penafiel said, recalling a house that went off the market as soon as they expressed interest.

    Zillow's prediction is based on Philly being a popular destination with a housing supply problem. We'll explore where the metro ranks on Zillow's list of hottest markets for 2025 and what other metros are doing differently.

    The Philadelphia Housing Authority (PHA) has launched an affordable housing strategy, buying two student housing buildings in University City for $20 million to turn into subsidized housing. PHA plans to acquire 2,000 units from the private sector, targeting desirable neighborhoods where residents have long been denied access. Buying existing buildings is cheaper and allows tenants to move in faster than building new homes.

    PHA's strategy includes a mix of buying and converting privately owned buildings, fixing its own older buildings, and building new homes. Landlords are asking PHA to buy their properties due to the benefits of working with the housing authority.

    Other news to pay attention to:

    * Almost a million square feet of retail space in Center City is tied to the Sixers' arena plan. What happens next?

    * A 130-acre, century-old church camp in Chester County will be preserved, shielding it from development pressure.

    * St. Joe's is trying to sell its entire University City campus.

    * A group of life sciences and real estate professionals says both investor cash and demand have slowed.

    House of the week: For $738,000 in Center City, a three-bedroom townhouse with a new roof.

    Mansion on the Delaware: We're taking a peek at a home on the market for $1.75 million in Edgewater Park, N.J., featuring seven bedrooms, 6½ bathrooms, and a tennis court.

    Trivia time: What caused last year's fire that gutted the sanctuary of Overbrook Presbyterian Church?

    Photo quiz: Can you identify the location shown in this photo?