Philly is one of the least affordable major metros for its renters

Housing in the Philadelphia region is often considered affordable when compared to other parts of the country. But tell that to renters who live here.

The Philadelphia metropolitan area is one of the least affordable in the country for its apartment renters based on their incomes, according to a report by the online real estate brokerage Redfin.

Apartments for rent in the last quarter of 2024 cost a median of $1,865 per month. The annual income a household needed to comfortably afford that rent was $74,600.

But last year, the typical renter household in the region made $58,970.

Of the 44 major metros that Redfin analyzed, the Philly metro ranked as the ninth-least affordable for its apartment residents.

» READ MORE: In 2024, homes for sale in the Philly region were more affordable than across the country as a whole. But they weren’t affordable.

“It really isn’t about whether or not anyone in this country can afford to live in Philly,” said Riquan King, director of advocacy at the Philadelphia-based Tenant Union Representative Network. “It’s about whether Philadelphians can live in Philly.”

And across the city, longtime residents have been priced out of their neighborhoods, because they can’t afford rents.

The recent boom in apartment construction — seen nationally and in Philadelphia — is helping to tame rent growth. That, along with growing wages, will help make rents across the country more affordable this year, said Sheharyar Bokhari, a senior economist at Redfin.

“The affordability gap between renting and buying is likely to widen further in 2025, as home prices rise and mortgage rates remain high,” Bokhari said in a statement. “That means potential homebuyers — especially from younger generations — may decide to continue renting for longer, as it’s the only affordable option.”

Nationwide, renters needed to make $63,680 to afford the median asking rent of $1,592 in the last quarter of 2024. That’s the lowest income needed since early 2022, according to Redfin.

But the typical U.S. renter household still didn’t make enough to comfortably afford the typical rent last year. The median income for these households was $54,752 — almost $9,000 less than they need.

Metro areas in Texas — Austin, Houston, and Dallas — were the most affordable areas for their apartment residents, who made more money than they needed to comfortably afford rent. Providence, R.I.; Miami; and New York were the least affordable for their renters.

Redfin considered apartments affordable if households spent no more than 30% of their income on rent.

King said housing is one of the many expenses that are squeezing Philadelphians, including childcare, health care, and transportation.

When it comes to housing affordability, he said, “what we’re really talking about is, do you have the ability to keep a roof over your head and pay for all the other components of life?”

The attorney gave the example of a Philadelphia woman who faced a judge last week after breaking a previous agreement to pay back rent to her landlord. She paid what she could but came up short because she needed to cover her son’s college registration costs. She had broken the agreement, so she lost her court case and will have to leave her home.

Tenants with low and moderate incomes can’t afford extra major expenses. They also can’t afford to stay in their homes when rents go up, but they struggle with moving expenses and securing another place to live. Renters regularly come to the Tenant Union Representative Network for help because they can’t find a home that is both big enough for their family and affordable.

“Rarely do you find both,” King said. “And sometimes you don’t find either.”

Nora Lichtash, executive director of the Philadelphia-based nonprofit Women’s Community Revitalization Project, said she wasn’t surprised by the area’s ranking on Redfin’s list.

“I know how bad it is, because I know how many people can’t afford rents in Philly,” she said. “When I see us compared to those other cities, it makes me even angrier.”

Lichtash is a leader in an ongoing campaign by the Philadelphia Coalition for Affordable Communities, a group of 78 organizations, to get the city to spend more of its housing funding on residents with the lowest incomes.

Philadelphians' incomes haven’t kept up with rising housing costs. They’re working more than one job to try to cover expenses. And residents with disabilities don’t make enough from their benefits to afford homes, Lichtash said.

» READ MORE: A community-driven initiative is asking Philly to spend more housing funds on the lowest-income households

Now is the time for the city to rethink how it uses its housing funds, according to the Philadelphia Coalition for Affordable Communities.

“People are really struggling,” Lichtash said.