Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff “City” Block
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Thought on the Center City District Report, Part II
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Hello. Two weeks ago, on February 25th, I shared my Thoughts on the Center City District Report, Part I. I discussed the separate areas that the report covers: Core Center City, Extended Center City, and the Adjacent Zip Codes. The Core and Extended combined make up Greater Center City. I also go into detail regarding the number of houses vs condos built in the past 20 years. It helps explain why we have such inventory shortages now.
Now to continue with Part II…
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Center City and University City together include more than half of the city’s total jobs. Center City has 42% and University City 11%. The Report refers to these two areas as “the city’s two major, transit-oriented employment nodes.”
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In 2021, only 267 housing units were completed in Core Center City, 1,129 in University City, 1,513 in Extended Center City, and 2,183 in the Adjacent Zips.
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Housing completions in 2021 were virtually all rental apartments. There were a very small number of single family housing completions and virtually no new condos. This has been a solid trend since 2013.
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The further out you get from Center City, the higher the percentage of owner-occupied properties. In 2021, only 28% of Core Center City households were owner-occupied. That goes up to 44% in Extended Center City. And 52% in the Adjacent Zips. 52% is also the percentage of owner-occupied for the entire city.
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Now my favorite topic is real estate for sale, so let’s focus on those numbers:
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a. As I have pointed out before, home prices in different neighborhoods or areas can fluctuate due to small sample sizes and the different qualities of the homes sold. Center City District acknowledges this in the report and asked Philadelphia residential real estate economist Kevin Gillen to look at each sale and account for these differences. Drexel’s Dr. Gillen found that Greater Center City home prices tracked along with the city as a whole between 1980 and 2000 but then greatly outpaced the appreciation in the entire city from 2000 to 2020. This trend really accelerated over the past decade.
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b. The two main reasons why Greater Center City real estate took off when compared to the city as a whole over the past 20 years: (1) Amenity rich luxury housing greatly increased, and (2) “the substantial improvements in the downtown environment.”
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c. I want to focus for a second on this latter point. I hear a lot of complaints about Center City. And we do have issues. Crime, homelessness, litter, city government issues, traffic, etc. And of course, city-wide poverty. These issues are prevalent urban issues nationwide and actually worldwide as well. Philly fares better with some of these issues and worse with others. You look at Facebook (which I have been fairly successful in avoiding over the past year), and you would think you can’t even walk the streets, as if Philly was a dystopian hellhole.
- I was born in Center City and grew up here in the 70s and 80s. I lived here through law school and as a young attorney in the 90s. And I have sold real estate here since 2001. Let me assure you, Core Center City, Extended Center City, and the Adjacent Zips are much more vibrant and positive now than at any time in the 20th Century. And since 2000, these areas (along with University City and the Northwest, among other areas), have gotten better and better (with an obvious dip due to the pandemic, though that comeback continues. Obviously, a long way to go with respect to the Center City office crowd, but they are coming back. My full admin staff and I have been back in the office full time for the past year).
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Philly is a growing city. The city as a whole, grew 5% between 2010 and 2020. But Core Center City grew 30% in that period, Extended Center City 21%, and Greater Center City 24%.
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Greater Center City is 62% White, 15% Black, 11% Asian, 7% Hispanic, and 5% other. Obviously, this is a much different racial breakdown than the city as a whole.
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48% of Greater Center City residents have at least a Bachelor’s Degree and 16% some college. This is also much different than the city as a whole.
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As discussed above and in more detail in previous issues of the ATB, city pricing is way up, and this is especially the case in Greater Center City, the Adjacent Zips, University City, and the Northwest. While this is great for current homeowners (and Realtors), it has caused an affordability crisis that has negatively affected less affluent Philadelphia residents. Like the issues mentioned in 5 (c) above, this is a complex and overriding urban issue that will need to continue to be addressed as we move forward. At the same time, note that Philadelphia’s home prices remain affordable compared to most large cities.
I hope you enjoyed this discussion. If you did and want to read the whole report, you can find it here.
Have a great weekend, and don’t forget to turn your clocks forward.
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830 S 48th Street
Brand New Listing
5 BD + Family Room | 2.5 BA | 3,640 SF | Spectacular Light | Covered Front Porch | Rear Yard | $850,000
Quintessential West Philadelphia character! Corner home with spectacular light, significant space, private rear yard, side yard, large covered front porch, high ceilings on 1st & 2nd floors, original hardwood floors, and a stunning turret. Situated on the corner of two desirable tree-lined blocks in the red-hot Cedar Park neighborhood, this substantial home enjoys beautiful views of spectacular, classic, West Philly architecture.
You will love this corner twin with south, east, and west exposures. 5 bedrooms plus a capacious family room, 2.5 baths. This loved and well-maintained home is saturated with natural light to show off those big rooms, high ceilings and significant original character. For such a large space, it retains a warm and homey feel. Approximately 3,640 sq.ft.
Beautiful Cedar Park location. Ample storage throughout. Superb 93 WalkScore, 99 BikeScore. This magical home overlooks two tree-lined blocks (Warrington Avenue & 48th Street) and is a short walk to Clark Park and its fabulous Farmers’ market, Cedar Park itself, Mariposa Food Co-op, Bookers, Dock Street, Gold Standard, Vietnam Cafe, Vientiane, Loco Pez, and all of Baltimore Avenue’s Restaurant Row, as well as other restaurants, shops & cafes. Close to HUP, CHOP, Penn, Drexel, University of the Sciences. 12 minutes to Rittenhouse Square by car or bike and plenty of convenient SEPTA options.
NOTES: Parking always available right on your block.
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Performances, Exhibits, and Tours
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Visit the Forrest Theatre to see a new darker version of Rodgers & Hammerstein’s musical Oklahoma! that’s set in the 21st century.
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Opening at 401 Market Street in Old City is the captivating Museum of Illusions which features over 80 exhibits meant to trick the eye using holograms, stereograms, and optical illusions.
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Learn more about Philly’s history during an adult-only night tour. While on this walking tour your guide will cover raunchy topics including vampires, sex, ghosts, and more all while you visit historical spots like Alexander Hamilton’s home and The Liberty Bell.
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Dining Events and New Openings
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Reading Terminal Market has joined in with the Harry Potter Exhibit fun and is now offering special treats including pretzel wands, butter beer pop tarts and whoopie pies, and Harry Potter-inspired cookies.
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Head to East Passyunk Avenue to dine at The Dutch a popular bruncherie previously located at 4th and Cross streets in Pennsport. Enjoy breakfast and lunch now, and starting Saturday dinner service will be added as well.
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For incredible views and an upscale six-course tasting menu visit the Four Seasons Philadelphia and head up to Jean-Gorges which just reopened this Thursday.
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Try out a unique dining experience at the Twisted Tail where you eat a three-course meal while blindfolded in a darkened candle-lit room. Dining in The Dark has three food options which include vegan, seafood, or meat. Tickets are selling fast, so be sure to reserve a spot today!
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245-257 S 44th Street
NEW LISTING
Seven Contiguous Shells Ready for Development
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7111 Germantown Avenue
NEW PRICES
Mount Airy
New Construction
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830 S 48th Street
BRAND NEW LISTING
5 Bed | 2.5 Bath
$850,000
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722 S Bancroft Street
BACK ON MARKET
NEW PRICE
3 Bed | 2.5 Bath
$749,500
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918 Remington Road
BRAND NEW LISTING
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4514 Osage Avenue
BRAND NEW LISTING
6 Apartment Property
$639,000
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257 S Farragut Street
BRAND NEW LISTING
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627 S 42nd Street
NEW LISTING
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6 Bed | 2.5 Bath
$629,000
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245 S 44th Street
NEW LISTING
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619 Wilder Street
BRAND NEW LISTING
3 Bed | 1.5 Bath
$342,690
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As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.
Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.
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Some imagery in this e-newsletter was sourced via UWISHUNU and Canva.
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