Philadelphia has been considered relatively undervalued among major cities in the East, but recent trends over the past five years suggest that this perception is gradually changing. Given the city's size, the recent changes are particularly noticeable due to its previously low profile.

According to Zillow data, the median home price in downtown Philadelphia was around $220,000 at the beginning of 2021, and it is now estimated to have risen to about $280,000. When calculated over five years, the cumulative increase is roughly between 25 and 27 percent, which falls short of the national average often cited as being between 35 and 45 percent.

By year, from 2021 to the first half of 2022, the relatively low price levels compared to New York and Boston attracted both actual buyers and investors, leading to significant price increases. From the second half of 2022 to 2023, trading slowed due to the impact of rising interest rates, and in some areas, issues related to crime rates led to notable adjustments. After 2024, a gradual recovery is expected, showing regional variations. Preferred areas like Center City and Fairmount have seen a relatively quick recovery.

Factors supporting Philadelphia's upward trend include relatively low entry prices among East Coast cities, a stable employment base centered around universities and the healthcare industry, and a geographical advantage located between New York and Washington, D.C. However, significant disparities in safety and school districts across neighborhoods appear to be widening the price gaps within the city.

From my nearly 20 years of observing this market, Philadelphia is a city with significant variations even within its urban core. While areas like Center City and some preferred neighborhoods have shown increases that are close to or exceed the national average, other areas have experienced stagnation. This disparity is likely to continue for the foreseeable future.

For Korean households, Philadelphia remains an attractive major city compared to New York or Washington, D.C., due to its relative accessibility. However, if considering a purchase, it may be safer to check detailed market prices and safety information for specific neighborhoods rather than relying solely on the citywide average.

The future outlook seems likely to vary by neighborhood, with some expecting gradual additional increases in areas undergoing urban redevelopment, while others suggest that the overall pace of increase may be slower than in nearby suburban areas.

Compared to New York or Washington, D.C., Philadelphia's absolute prices are still relatively low, highlighting its attractiveness. However, since wage levels differ significantly, it would be a more balanced approach to consider the local job market alongside prices rather than making judgments based solely on price.

In the rental market, steady demand continues around university and hospital areas. If investing, I recommend prioritizing areas with stable rental demand.

Ultimately, Philadelphia can be summarized as a market that requires a neighborhood-level approach rather than viewing the city as a whole, and I advise checking detailed regional data for both buying and selling.