Real estate investment isn’t just a passive source of income. It’s a market itself, with a total value estimated at $10.5 trillion in 2020 for managed residential properties alone. In the northeast, real estate in the Fairmount neighborhood of Philadelphia has seen no small share of interest over the past few years. As of October 2021, Fairmount houses for sale are seeing a year-over-year increase of more than 17% and a median sales price of $415,000.
This price is in sharp distinction to some of 2021’s real estate trends in Philadelphia overall. If real estate in 2020 was a seller’s market, it may have been a fortunate combination of low mortgage rates and limited supply. Yet, 2021’s summer season proved to be atypical for the Philadelphia metropolitan area, with three consecutive months of decline between April and July. Thankfully, it has made a comeback in the past few months. While the momentum may be high right now for Fairmount, Philadelphia real estate, is now the best time to sell your investment property?
Is Fairmount, Philadelphia an Up and Coming Market?
With a nickname like the “Art Museum Area,” you can be certain that Fairmount holds a certain cachet in America’s cultural landscape. But Fairmount isn’t simply a neighborhood for art lovers. With a median age of approximately 35 and almost one-third of area residents possessing a master’s level education and above, the neighborhood has been attracting professionals looking for a community that is as mobile and vibrant as it is historically rooted. That’s one reason why houses for sale in Fairmount are continuing to draw attention from property buyers looking for an established market.
Fairmount is a neighborhood that’s as convenient as it is profitable. It’s historic. It’s dynamic. Most of all, Fairmount is a neighborhood that is quintessentially Philadelphia.
The Advantages of Rental Properties in Fairmount, Philadelphia
Whether it’s Fairmount, Philadelphia real estate or any other metropolitan neighborhood in the U.S., the chief advantage of investing in rental properties is the same: a consistent and reliable cash flow. But houses for sale in Fairmount have a particular advantage by attracting renters with a much higher net worth than many other Philadelphia neighborhoods. Recent estimates have placed the median household income in Fairmount to be well over $77,800 — an increase of nearly 20% compared to the national average of $62,843.
One reason for this advantage is the iconography of Philadelphia itself. The City of Brotherly Love has played host to some of the world’s most prestigious museums and cultural venues, with Fairmount squarely at its epicenter. With the Philadelphia Museum of Art alone garnering some 800,000 annual visitors from around the globe, the neighborhood’s status as a cultural landmark makes Fairmount Philadelphia real estate an attractive proposition for any investor’s portfolio. Add a thriving food culture, a prominent historical background, renowned woodlands, and close proximity to Philadelphia International Airport, it’s little wonder that Fairmount continues to be one of the chief assets of Philadelphia’s tourism industry.
The Disadvantages of Rental Properties in Fairmount, Philadelphia
Of the 13,676 occupied housing units in Fairmount, nearly 8,000 of them are renter-occupied houses. While this predominance should encourage any investor in Fairmount, Philadelphia real estate, the actual number of homeowners has decreased dramatically throughout Philadelphia over the past ten years. This may mean greater availability for qualified buyers, but it also means a greater competitive disadvantage for newer investors.
Along with a considerably higher median household income, Fairmount, Philadelphia also has a 17% higher cost of living than the national average. Still, owners should know that the 2% rule of renting in real estate can also prove to be cost-prohibitive in a city like Philadelphia. In August 2021, the average rent for Philadelphia was reported at $1,736. Yet, with a median property value of $424,000 as of September 2021, the average rent in Fairmount following the 2% rule would place it at $8,480 — a rate that’s well out of line with the greater Philadelphia real estate market at large and one that can place property owners at a distinct disadvantage.
The Future of Fairmount, Philadelphia Real Estate
Not all neighborhoods remain static — nor should they. Philadelphia’s demographics are changing, but so are economic opportunities throughout the northeast. With plans already underway for a $100 million mixed development scheduled to open in Summer 2022 and ongoing revitalization efforts in historic Fairmount Park, Fairmount, Philadelphia is well placed to serve the needs of both renters and property owners beyond 2021. But as Philadelphia’s population changes, can Fairmount still maintain its historic appeal?
The answer is yes. Growth in Philadelphia will only be as strong as the respective neighborhoods which helped make it what it is today, not the least of which includes Fairmount. Philadelphia may not be the East Coast’s answer to Silicon Valley. That’s because it doesn’t need to be. It has a character and a pedigree all its own, and Fairmount is a large component of that. The value of the real estate market in any neighborhood is subject to changing times, and houses for sale in Fairmount are no exception. What isn’t changing is the value of Fairmount itself. Not just as an investment, but as a community.
Philadelphia has seen more than its share of changes in the past ten years. That’s why turning to agents who understand the Fairmount, Philadelphia real estate market can help you make sense of the ebbs and peaks. Experience counts for everything when selling your investment property. Turn to trusted real estate agent Chris Hvostal and the Hvostal Group for guidance and insight into what makes the Philadelphia real estate market so unique.
