Million Dollar Home Sales in Philly Broke a New Record in 2022
Million dollar home sales in Philadelphia broke a new record again in Q2 2022. Kevin C. Gillen, Ph.D. is an economist who holds positions as both a Senior Research Fellow with the Lindy Institute for Urban Innovation and an adjunct Professor of Finance at Drexel University. He produces quarterly reports on the state of the Philadelphia region’s housing market. His most recent data release shows data through Q2 of this year.
The New Record
There were 95 home sales at a price of $1 million or more in Q2 of this year.
This broke the previous record of 87 that was set in the previous quarter, Q1 2022, which had broken the previous record of 86 such sales that was set in the quarter just before that.
To show just how much growth this is, from 2012 (when the current expansionary cycle began) through Q3 2021, +$1m house sales averaged just 28 per quarter.
The high volume of of million dollar home sales tells us that Philly’s location value remains strong with high income households and they’re willing to pay a significant house premium to live here.
In What Philly Neighborhoods did the Million Dollar Home Sales Occur?
The highest concentration of million dollar home sales occurred in Center City, particularly around Rittenhouse Square, Fitler Square, Graduate Hospital, and Society Hill. But we are seeing these high end home sales spread out throughout the city.
More than 5 years ago, the neighborhoods with million dollar home sales were much more concentrated in Center City and occasionally in Chestnut Hill and Mount Airy.
Now, it’s more spread out in Fairmount, Fishtown, Northern Liberties and a few others.
This shows that there has been significant investment and revitalization outside of just of Center City and not only in the most affluent neighborhoods. There is also a lot of new development happening in Philly in areas like Northern Liberties and Fishtown, which is creating new supply of luxury homes.