There's no doubt that Center City on the rise, with developments, residential towers, and retail experiencing massive growth. But housing demands may not be able to keep pace with supply if people continue moving out of the neighborhood. That's according to a new report released by the Center City District and Central Philadelphia Development Corporation, which found that more people continue to venture outside of Center City for housing compared to those who move in.
The report found that more units have been built in Center City in the past three years than in the previous ten combined. Another 5,833 units are under construction and expected to deliver in the next three years.
Still, with more residents opting to rent in the city or choosing to own homes elsewhere, the study authors say that Center City needs to add 650 more households per year above the average growth rate per year in order for demand to keep up with supply.
The report noted other significant findings:
· Despite the uptick in millennial residents, about a third of those who moved into Center City in 2000 have since moved from the area.
· 21,000 people moved into Philadelphia from 2010-2014, but 28,000 moved to suburbs — a net loss of 7,000 per year.
· Center City and University City accounted for 37 percent of all in-movers to Philadelphia between 2010 and 2014.
So where are all of these people moving to? Mostly to Montgomery County, but also New York, LA, and Camden.
The study authors note that in order for demand to keep pace, the city will need to address unemployment and poverty and commit to public policies that promote job growth.
· Sustaining Demand for Downtown Housing [Official]