The State of Housing Affordability in Philadelphia

Housing prices and rents in Philadelphia have long been lower than in many other big cities. But over the past decade, as Philadelphia has shifted from a shrinking city to a growing one with an increased demand for housing, officials and advocates have expressed mounting concern about the degree to which the city remains affordable— and for whom. To assess the situation, The Pew Charitable Trusts conducted a detailed examination of housing data from Philadelphia. They put the findings in the context of other large cities throughout the country, both the 10 largest high-poverty towns and the 10 most populous.

In analyzing housing affordability, this report focuses more on the demand side of the equation—the price of housing and people’s ability to pay for it—than on the supply of units. In doing so, it relies heavily on the concept of cost burden: As defined by the Census Bureau and the U.S. Department of Housing and Urban Development, cost burden occurs when a household spends 30% or more of its income on housing costs, including rent, mortgage payments, utilities, insurance, and property taxes.

Also Read: The Impacts of Affordable Housing on Health: A Research Summary