Moving to Philadelphia

Quick insights

• Whether you’re drawn to the energetic Center City or the charming residential areas of South Philly or Fishtown, Philadelphia offers a variety of housing options to suit your preferences and budget.
• Living in Philadelphia offers a unique tapestry of cultural experiences, culinary delights and community engagement opportunities like the Philadelphia Flower Show Festival or the Philadelphia Folk Festival.
• Buying a home in Philadelphia means you have access to world-class museums, historical landmarks like Independence Hall, a range of quality schools and numerous parks and recreational opportunities.

Situated along the banks of the Delaware River, Philadelphia is a city known for its history, culture and innovation. Referred to as the “City of Brotherly Love”, this metro area boasts a rich cultural heritage with several iconic landmarks like the Liberty Bell and vibrant neighborhoods like Rittenhouse Square. And let’s not forget about sports – the heartbeat of this city. Whether you’re catching a Phillies baseball game at Citizens Bank Park or cheering on the Eagles at Lincoln Financial Field, Philly’s passion for sports is contagious. For individuals looking to buy their first home in Philly, this can be a great opportunity for you to immerse yourself in a city that embraces diversity, culture and a deep love for sports.

Living in Philadelphia

Each neighborhood tells a unique story. From the cobblestone streets of Old City to the bohemian enclave of Fishtown, each area offers its own distinctive charm.

For individuals seeking employment, the bustling business districts of Center City offer career opportunities in industries such as healthcare, finance, education and technology. Whether you’re intrigued by its historical landmarks or growing economy with abundant job options, Philadelphia is a dynamic city with many possibilities.

What to consider when moving to Philadelphia

As a first-time homebuyer, there are a few factors you may want to consider before buying a home in Philadelphia:

• Neighborhood: Consider proximity to your job to minimize commute times and transportation costs. If you have kids, evaluate the quality of schools in the area and explore amenities such as parks, grocery stores, local eateries and recreational facilities.
• Proximity: Philly is a mid-Atlantic city uniquely situated amidst a network of major urban centers. The Amtrak plays a key role in connecting Philly to other major cities like New York and Washington D.C., making it a convenient travel hub. The city’s transportation infrastructure includes the famous Schuylkill Expressway, a vital artery linking the city to its suburbs and beyond. In addition to the Jersey Shore and Delaware beaches (Rehoboth Beach), Philly is close to the Pocono Mountains, which features hiking trails, ski/snowboard mountains and lodges.
• Transportation: Philadelphia offers extensive public transportation options including SEPTA buses, trains, trolleys and subway lines. The PATCO Speedline train system runs from Center City Philly into popular South Jersey suburban towns like Haddonfield and Collingswood, NJ. The system also has connections to SEPTA at 15th/16th and Locust, 12th/13th and Locust, and 8th and Market.
• Affordability: Analyze the cost of homes in different neighborhoods and research current market trends. Philadelphia’s housing market varies by neighborhood. Consider monthly expenses, property taxes and interest rates.
• Condition of the home: Inspect the condition of the home you’re considering in Philadelphia. Older neighborhoods like Fairmount or Society Hill may feature historic properties requiring a greater degree of maintenance and potential renovations.
• Community atmosphere: Look for neighborhoods where residents actively participate in local events, community organizations and family-friendly amenities like playgrounds, libraries, festivals and cultural attractions.

Pros and cons of living in Philadelphia

Living in Philadelphia comes with a mix of advantages and disadvantages that first-time homebuyers and prospective residents may want to consider.

Pros of living in Philadelphia

• Cultural richness: Philadelphia boasts world-class museums such as the Philadelphia Museum of Art, the National Constitution Center and the Barnes Foundation.
• Impressive food scene: Philadelphia is known for its food scene. From iconic cheesesteaks at Pat’s King of Steaks and Geno’s Steaks in South Philly to upscale dining experiences in Center City, Philadelphia offers a variety of culinary options.
• Healthcare facilities: Philadelphia is home to many renowned hospitals such as the Hospital of the University of Pennsylvania (HUP) and Children’s Hospital of Philadelphia (CHOP).
• Robust transit system: Philadelphia has an extensive public transit system, SEPTA, which provides bus, subway, trolley and rail services to residents. The city’s walkability and bike-friendly infrastructure also contribute to its accessibility.

Cons of living in Philadelphia

• Traffic: Traffic congestion can be a problem especially during peak hours, and particularly in and around Center City. Some of the more congested highways could be I-76, I-676, I-95 or Roosevelt Blvd.
• Weather: You can expect to experience four different seasons while living in Philadelphia, including hot, humid summers and cold winters.
• Cost of living: According to Payscale, Philadelphia’s overall cost of living is 5% higher than the national averageec-payscale-philadelphia.

Cost of living in Philadelphia

According to Payscale, Philadelphia’s cost of living is 5% higher than the national averageec-payscale-philadelphia. Utility expenses are 12% higher than the national average, and transportation expenses like bus fare and gas prices are 9% higher than the national averageec-payscale-philadelphia.

Availability of housing options can also vary by neighborhood, with some areas experiencing higher demand and prices. Although Philadelphia has a slightly higher cost of living compared to the U.S. average, the city offers a more affordable cost of living compared to many major metropolitan areas like New York City or Boston San Francisco.

How to buy a house: First-time homebuyer Philadelphia

Buying a home in Philadelphia involves multiple steps, from getting preapproved for a mortgage to closing on the property.

• Check your credit: Review your credit report and score. The credit score necessary to buy a house varies depending on a range of factors such as housing price, lender and type of mortgage. For example, most conventional loans require a credit score around 620.
• Gather financial documents: Compile various financial documents required to get preapproved for a mortgage such as W-2 stubs, bank statements, a list of qualified assets and current debt obligations.
• Get preapproved: Submit financial documents to your Philadelphia home lending advisor for preapproval. This typically involves a credit check and assessment of your current financial situation to determine the loan amount you qualify for.
• Understand the different mortgage options: The 30-year fixed-rate mortgage is a popular option where the interest rate remains constant for the entire 30-year term. Federal Housing Administration (FHA) loans typically require low down payments but have mortgage insurance premiums. Veteran Affairs (VA) loans often have favorable terms including no down payment requirement.
• Find a real estate agent: Look for trusted real estate agents who possess local knowledge about the neighborhoods you’re interested in.
• House hunting and making an offer: Define your criteria such as desired location, budget, amenities and size. Once you find a home, your real estate agent will draft an offer letter. This typically includes the offer price, contingencies (such as conducting a home inspection) and other terms.
• Complete the mortgage process: Complete the formal mortgage application process with your chosen loan officer. Conduct a final walkthrough of the property and attend the closing meeting to sign all necessary documents. Once funds are transferred, you will receive the keys to your new home in Philadelphia.

In summary

With careful planning, thorough research and expert guidance from real estate professionals familiar with the local market, purchasing a home in Philadelphia can be a rewarding experience. You can explore additional resources such as the City of Philadelphia’s official website or community organizations like the Philadelphia Association of Community Development Corporations (PACDC). By understanding the local housing market and utilizing available resources, first-time homebuyers can navigate the process with more ease and find a place to call their own in this historic city.