As the year comes to a close, let’s look back on some of the biggest moments in Philly real estate news in 2021.
Northern Liberties Population Expected to Double with 4,600 New Residences Coming to the Area
The population of Northern Liberties is expected to nearly double in the next two years. This is because there are 4,600 new residential units and 184,655 sqft of commercial space available or under construction.
The NLBID estimates that 5,000 to 10,000 new residents would move into the neighborhood in the next two years, which would double the current population of Northern Liberties.
New residents isn’t the only new thing in Northern Liberties. Despite the pandemic, the neighborhood has seen a record-breaking number of new restaurants and businesses in the area.
As the neighborhood prepares for this continued and rapid growth, NLBID secured funding to re-design 2nd Street and make the neighborhood even better for the people who currently and in the future will call NoLibs home.
2. Philadelphia’s 10 Year Tax Abatement Program is Changing at the End of 2021
Philly’s 10 year tax abatement has been around for more than 20 years and has led to a real estate development boom. It’s a tax break for new or rehabbed construction. But the current program is ending and a new version will take its place.
As is stands in 2021:
For owners of new construction properties: under the abatement these owners only pay taxes on the value of the land underneath the buildings for ten years.
For owners of rehabilitated properties: under the abatement these owners are exempt from paying taxes on the value of the improvements. You will only be taxed on the value of your home before you did any upgrades for ten years.
What’s changing after 2021:
Owners who want to take advantage of the 10 year tax abatement need to get their applications in by the end of the year - December 31, 2021. If. you get it in by then, you can still get the 100% tax abatement for all 10 years.
But here’s the plan to phase it out - owners who apply after January 1, 2022 would receive the full 100% during the first year, but it would decrease by 10% each year for 10 years until you’re paying the full tax amount.
3. 3 New Luxury Condo Buildings that will Change Philly’s Skyline in 2021
The Philadelphia skyline is iconic; and there are a few new additions to it. Three new luxury condominiums are being built that will change the face of the skyline as we know it.
The Laurel - Rittenhouse Square: 1911 Walnut Street, Philadelphia PA 19103
The Laurel is the tallest new condominium tower in Center City. Located on the historic Rittenhouse Square, this condominium will take you to new heights - literally. The glass tower soars to the sky with 48 stories and has views for days.
This is your chance to live in a work of art on the Avenue of the Arts! Arthaus living includes a rooftop glass-enclosed greenhouse, outdoor terrace, fitness center, 75-foot pool w/ hot tub, chauffeur-driven town car, 24/7 concierge, and so much more.
2100 Hamilton: 2100 Hamilton Street, Philadelphia, PA 19130
Elegance meets serenity at 2100 Hamilton, a luxurious 10-story condominium with 27 residences and nearly a half acre private residential garden. You get the best of both worlds here. It’s quiet and relaxing with beautiful city views.
4. Philadelphia’s Home Appreciation Rates are up 14.5%, Outpacing the Suburbs and the Entire Country
To put it simply, home values are up in Philadelphia in 2021. We’re seeing appreciation rates up 14.5% in Philadelphia. That’s compared to a 7.9% increase in Philly suburbs and 12.6% increase in the entire country.
Plus there are certain areas in Philly that have seen home values go up the most over the past year as well as over the past decade.
Areas that have seen the highest home appreciation rates over the past year:
Areas that have seen the highest home appreciation rates over the past 10 years:
It’s important to look at appreciation rates especially when you are looking at investment properties. Don’t wait to buy, buy and wait!