PHILADELPHIA, PA — Finding an apartment in Philadelphia and its suburbs grew noticeably tougher in 2025 as more renters stayed put, new construction lagged demand, and competition intensified across the region, according to a year-end rental market analysis.
In Philadelphia, fewer renters moved this year, tightening supply even as modest new construction came online. New apartment development increased 2.46 percent, down from 3.23 percent the year before, while more than 65 percent of renters renewed their leases. That pushed occupancy to 92.2 percent, leaving limited options for those trying to relocate or secure their first apartment.
With fewer units available, competition sharpened. An average of nine renters chased each vacant apartment in the city, up from eight last year. Philadelphia’s Rental Competitiveness Index climbed to 72.8, a 4.4-point increase year over year, signaling a market increasingly tilted toward landlords.
Suburban Philadelphia proved even more competitive. The region ranked as the seventh-hottest rental market in the nation in 2025, rising one spot from last year. New supply rose just 0.89 percent, barely above 2024 levels and far short of meeting demand. At the same time, 77.3 percent of renters renewed their leases, the second-highest renewal rate in the country, leaving only about 5 percent of apartments available.
Apartments in the suburbs leased quickly, typically within 43 days, one day faster than last year. On average, 11 renters competed for each available unit, driving the suburban Rental Competitiveness Index to 83, up from 81.5 a year earlier.
The report also highlighted differences in renter behavior between the city and suburbs. In Philadelphia, renters generally sign 12-month leases and renew for another year, staying an average of 28 months, closely matching the national average. In suburban Philadelphia, renters tend to stay longer, about 36 months, reflecting a broader Northeast trend in which residents remain in place longer than elsewhere in the country.
Together, the findings paint a picture of a region where limited supply and high renewal rates are squeezing availability, making the search for an apartment increasingly challenging across both urban and suburban Philadelphia.
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