A new report from the Pew Charitable Trust found that Philadelphia home sales have declined nearly 40 percent between 2022 and 2023, writes Aaron Moselle for WHYY.

In 2023, 15,617 homes were sold, nearly 10,000 fewer than in 2022, which was considered a banner year for home sales in Philadelphia.

“It was one of the highest numbers of sales that we’ve had since the Great Recession,” said Katie Martin, lead researcher on Pew’s latest “State of the City” report.

The report attributes the 2022 uptick to low interest rates and other “pandemic-related” trends, including the increase of people working from home.

The dip in sales today, however, can be attributed to affordability—or lack thereof. The average rate for a 30-year fixed mortgage is around 7 percent, more than double the rate for homeowners who refinanced during the pandemic.

Between 2013 and 2023, an average of 18,594 Philly homes were sold, according to the report.

It’s unlikely that home sales will return to 2022 levels anytime soon as Philly is experiencing an inventory crisis with homeowners staying put instead of purchasing a new property with a higher mortgage rate.

Despite the drop in home sales, Philly homeowners continue to outnumber renters.

Read more about how Philly homeowners compare among its peer cities in WHYY.

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Editor’s Note: This post first appeared on PHILADELPHIA Today in April 2024.