Homebuying in the Philly area is more expensive than last year. Here’s why

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New data show that homebuying in the Philadelphia area has become less affordable over the last year.

Would-be buyers in the metropolitan area needed to earn just over $94,000 a year to afford a typical home in June, according to real estate broker Redfin. The total is 4.5% higher than at the same time in 2025 and roughly $20,000 above the metro’s median household income.

“Philadelphia definitely is one of those places where people in the middle class are having a difficult time becoming homeowners,” said Daryl Fairweather, chief economist at Redfin.

As of June, the median sale price for a home in the Philadelphia metro was $337,988.

The figure, which covers the city and Delaware County, means that a median-earning household could afford just about half of all home listings that month, according to the report.

Redfin’s analysis puts a finer point on an affordability crisis that continues to sideline many aspiring homebuyers, especially first-timers.

While there are more listings than last year, economists say inventory remains historically low. And the homes that are on the market are more expensive than ever.

That is particularly true for Philadelphia, where prices are growing at one of the strongest rates in the country, largely because of pressure created by the city’s robust health care sector, according to Mark Zandi, chief economist at Moody’s Analytics.

“Philadelphia’s large and strong health care industry is creating many jobs and driving income growth. The increase in jobs and income is, in turn, driving up housing demand and thus supporting stronger house price growth,” Zandi said in June.

Fairweather said transplants from cities with more expensive housing markets, including New York and Washington, are also keeping prices high in the area.

“It’s a reasonable commute — even if you’re going into the office every day. So I think more people are looking at Philadelphia from New York, and they’re bringing their higher salaries with them, and that added demand pushes up prices. And there hasn’t been enough new construction happening to offset that increase in demand,” Fairweather said.

In the New York metro, in June, someone needed to earn $233,189 annually to afford a typical home, according to the report. That total was effectively flat compared to the same time last year.

Boston and Los Angeles each saw a slight drop in the income needed to afford a median-priced home.