Were you anxious while touring homes in Philadelphia?

Compared to the home prices in major East Coast cities like New York or Boston, Philadelphia is relatively more affordable, but it can still be a tough decision when you actually see the homes.

According to Redfin data, as of May 2026, the median sale price in Philadelphia over the last three months is $290,000, which is a 3.5% increase compared to the same period last year. Zillow reports the average home value at $221,032, which has actually decreased by 2.2%. This drop seems to be due to a high proportion of lower-priced listings in Philadelphia, which lowers the average. I will calculate based on a more realistic transaction price of $270,000.

If you buy a $270,000 home with a 20% down payment ($54,000) and take out a loan of $216,000 at a fixed rate of 6.75% for 30 years, your monthly principal and interest payment will be about $1,401. The property tax in Philadelphia is approximately 1.4%, which adds about $315 per month, and with homeowners insurance at $1,700 annually, that adds another $142 per month, bringing the total monthly housing cost to around $1,858.

Using the DTI 28% rule, the required monthly income would be $6,634, which translates to an annual income of $79,613. Considering that the median household income in Philadelphia is $61,953 as of 2024, this means you would be about $18,000 short if relying solely on the average income. However, I want to emphasize that this gap is not as significant compared to other major cities.

Even in the suburbs of Philadelphia, areas like Lansdale in Montgomery County ($461,000) or Blue Bell ($750,000) are much more expensive compared to the city. Some people may hesitate to live in the city due to school districts or safety concerns, but I hope you also consider the advantage of a lighter income burden.

Recently, there has been a growing interest among young Korean couples in redevelopment areas like Fairmount and Queen Village in Philadelphia.

To the Korean households, realistically speaking, if your combined annual income is around $75,000 to $80,000, you can definitely consider purchasing an average-priced home in Philadelphia. However, if school districts are your top priority, you should also consider the suburbs of Montgomery County, but keep in mind that the income threshold will also rise accordingly.

Additionally, Philadelphia has a city wage tax, which means your disposable income may be slightly lower than in other cities. Taking this into account, the actual burden may feel a bit heavier than the calculated figures.

In conclusion, Philadelphia appears to be one of the more accessible markets among East Coast cities. I recommend carefully weighing your options between suburban school districts and the city based on your income capacity.