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Average Cost of Living in Philadelphia: An In-Depth Guide

Philadelphia has a lot to offer and is one of the most popular cities in the northeastern United States. If you are looking into buying a home in this city, you should be ready to enjoy a lower than average cost of living and a lot of cheesesteaks.
Philadelphia has a lot to offer and is one of the most popular cities in the northeastern United States. If you are looking into buying a home in this city, you should be ready to enjoy a lower than average cost of living and a lot of cheesesteaks.

With its iconic sites and historic monuments, Philadelphia is an excellent location for those who are interested in relocating to a city rich in culture, arts, and limitless entertainment.

Looking to move to the City of Brotherly Love? Perhaps you just can’t resist the promise of a phenomenal cheesesteak. Maybe you salivate at the idea of living in a city with four major sports teams. Either way, Philadelphia, Pennsylvania is the place for you.

Well, if you can afford to live here.

Philadelphia is one of the premier cities in the northeast region and boasts a solid economy. If you’re wondering just how much it costs to live in such an established city, don’t worry, we’ve got you covered.

Frankly, there are tons of factors that will influence the cost of living in Philidelphia. It pays to do your homework when trying to determine the cost of living in Philadelphia before you commit to a move or purchase a home in the city.

Your best chance to save money and uncover region-specific costs is to consult an experienced realtor that can answer any questions that you may have. A Clever Partner Agent can help to get you into the home of your dreams without breaking the bank.

Typical Home Prices in Philadelphia in 2019

Philadelphia is a relatively affordable city in which to purchase a home. When compared to the median home value of the United States, Philadephia’s median home values are significantly lower. In fact, according to May data from Zillow, the median home value in Philadelphia is $156,400, which is nearly $70,000 below the national value as of 2019.

The median sales price of a home listed in Philadelphia is around $235,000, which is right on par with the median across the nation. Home values are not expected to rise in 2019, as they have enjoyed steady growth in the past year.

Seasonal fluctuations do affect the prices of homes in the city. Like most cities that experience both winter and summer seasons, buyers are often able to snap up lower-priced homes during the cold months. Sellers are able to make a larger profit when selling during the warmer months.

How Much are Philadelphia Property Taxes?

Property taxes in Philadelphia are relatively cheap. The Office of Property Assessment in the city makes adjustments and calculates the cost of property taxes on your home. As an early holiday gift, homeowners can expect a bill to arrive sometime in December. All taxes are due on the last day of March the following year.

So how much do property taxes in Philadelphia cost?

You should expect to pay around 1.3998% of your home’s value in property taxes. If you get your payment in prior to the end of February, you get a 1% deduction from your property tax costs. You can expect to pay more one-time taxes when buying or selling based on Pennsylvania’s tax laws.

Average Homeowners Insurance in Philadelphia

Homeowners insurance is a must for those who don’t wish to pay out of pocket for unexpected damage to their homes. Unfortunately, events like fires, lightning strikes, hail, and theft can cost homeowners a lot of money in repairs and replacement. Homeowners insurance helps to keep you protected from having to pay those costs upfront.

Philadelphia’s homeowners insurance costs are lower than the national average by 35%, according to Insurance.com. You can expect to pay around $900 yearly and about $75 monthly on homeowners insurance. These costs can vary as homeowners have the option of adding more or less coverage.

Common Maintenance and Repair Costs in Philadelphia

For first-time homeowners, it’s a good idea to do some research on some of the common costs of maintaining a home. However, even if you are an experienced homeowner, you may be unprepared for some of the costs that come with owning a home that experiences a full winter season.

Homeowners typically have funds set aside to take care of yearly maintenance costs as they come up. It can be difficult to determine exactly how much you should save for common repairs and maintenance. Many realtors and experts alike suggest that 1% of the value of your home should be stocked away for these costs.

These funds should be enough to cover routine maintenance costs such as HVAC systems checkups, landscaping needs, any repairs related to seasonal changes, and any professional cleaning. These costs vary across the board, however, the average homeowner should expect to pay around $2,600 in maintenance costs on a yearly basis.

Other Costs of Living in Philadelphia to Consider

With every move, there are hidden costs that are hard to determine without having already lived in the area. You might realize that it’s cheaper to do laundry at your local laundromat as opposed to keeping an in-house washer and dryer. You may not anticipate the cost of parking while you’re at work all day. All of these costs add up and can make a significant impact on your budget when you’re planning a move.

Luckily, Philadelphia is one of the more affordable cities in the United States. The average cost of groceries in the city is only $100 higher than the national average, which is common for a city its size.

If you want to save on transportation, Philadelphia’s extensive transportation system is an excellent option. For example, if you intend to utilize the city’s bus and rail system, expect to shell out around $100 for a monthly pass good for 240 trips. Only need a pass for a day? $9 gets you 8 rides a day.

Philadelphia is a sports fan’s haven. With a basketball, football, baseball, and hockey team in the major U.S. leagues, there is never a shortage of games to see. If you plan on going to see one of Philadelphia’s sports teams play expect to pay anywhere from $16 to $800 depending on how close you’d like to be to the action.

Find a Top Philadelphia Real Estate Agent

One of your most invaluable resources in the buying journey is an experienced real estate agent. Clever works with talented and knowledgeable real estate agents across the country and we help to get you connected with them. Our Clever Partner Agents want to help you to buy the house of your dreams and save you thousands of dollars in the process.

Speaking of thousands of dollars, our flat-rate Partner Agents agree that buying a home should be affordable. That’s why Clever Partner Agents will work to help you receive a Home Buyer Rebate in Philadelphia. Buying with Clever allows you to partner with seasoned real estate agents all the while saving you money.

 

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Reuven Shechter

Reuven Shechter is the Outreach Coordinator at Clever Real Estate, the free online service that connects you with top real estate agents to help save on commission. He spreads the word about Clever, disseminating studies to journalists and developing relationships with media outlets. Reuven is passionate about investing in real estate and creating lasting success for families. His writing has been featured in Max Real Estate Exposure, Leverage Marketing, and more.

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