T
he proposed Sixers arena dominated the headlines, but other developments also made waves in Philadelphia's real estate scene. A rendering of the 76 Place arena shows its potential impact on Center City.
This year was relatively calm for Greater Philadelphia's real estate and development front, but one project generated significant heat - enough to melt any snow that falls this winter. That project leads our list of top real estate stories for 2024, with everything else a distant second.
1. The fight over the Sixers' proposed arena in Center City entered its third year this summer. While the arena proposal cleared a key hurdle recently, this one's far from over. Mayor Cherelle Parker supports the project, but Chinatown residents and Thomas Jefferson University Hospital have concerns about event-related traffic and gentrification.
The Chinatowners fear it would keep regulars from patronizing their restaurants, while Jefferson worries it would hinder ambulances headed for the emergency room. SEPTA also has concerns about providing additional transit service and potential problems with Jefferson Station.
Despite these challenges, City Council's vote to clear the way for the Sixers to build on the Fashion District site brings it closer to reality than a previous proposal for a Phillies ballpark.
2. New apartment buildings continued to flood the Center City market this year, with nearly 13,000 units slated to open in 2024. Notable contributions included 1001 South Broad, The Josephine, and 210 South 12th, the tallest apartment building in Philly's Gayborhood.
While most of these buildings cater to the upper end of the market, landlords have managed to fill them, with 77.4 percent occupied as of mid-2024. However, vacancy rates rose in upscale neighborhoods, causing average rents to fall in the city.
Upscale developer Post Brothers offers a $1,000 credit towards monthly rent for healthcare and education workers at several of their newest developments.
3. Home construction continued its slide in Philadelphia this year due to higher interest rates and reduced property tax abatement. The pace of apartment construction cooled down significantly in 2024, with the city issuing building permits for 2,463 residential units, a drop of 36 percent from 2023's figure.
The overall housing market has stabilized in the last two years, but rising house prices remain a worry for some would-be buyers. As of November, the median home sale price in Philadelphia stood at $260,000, up nearly 21 percent from a year ago.
4. Despite rising prices, the housing market remains steady, with houses selling for close to their asking price in a reasonable amount of time - 48 days on average as of November.
