Philly is a real estate bargain no more

Building boom kicks off affordability crisis

TRD New York TRD WEEKEND EDITION /
Jan.January 06, 2018 09:06 AM

(Credit: vic15/Flickr, back; Tom Woodward/Flickr, front)

The city long regarded as a trove of cheap housing — at least compared to New York — is in the middle of an affordability crisis.

Home prices in parts of Philly have jumped more than 50 percent since 2014, according to Zillow — and the increases come as the city is simultaneously home to the largest proportion of residents below the poverty line, as compared to America’s 10 top biggest cities. According to the Wall Street Journal, local government is responding with a new law that would force residential developers to offer 10 percent of new units for below-market rate rents.

Developers could also choose to pay into a city-managed fund to repair homes in lieu of selling or renting 10 percent of its units at lower rates. In exchange, for the concessions, under the law developers would be able to build more units than they would otherwise be permitted under the city’s existing zoning.

According to Alterra Property Group’s Leo Addimando, the law, if passed, would “certainly slow down residential development.”

[WSJ] — Erin Hudson


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jennifer Lopez and Alex Rodriguez with their Malibu beach house (Getty; Courtesy Compass)

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...