Philadelphia is currently experiencing a historic surge in multifamily development, with over 13,000 units under construction throughout the city, writes Paul Schwedelson for the Philadelphia Business Journal.

In 2021, developers raced to get multifamily projects approved to take advantage of low-interest rates and the city’s readiness to scale back its ten-year tax abatement for new development.

Among the notable developments that debuted in 2023 is The Carson in Northern Liberties, with 12 stories and 373 apartments; The Battery in Fishtown, with 173 apartments at a former PECO power plant; and Avira at Schuylkill Yards, with 326 apartments.

The surge in the number of new residential units has artificially increased supply in the city, according to CBRE Senior Vice President Spencer Yablon, which has left the apartment market “a little soft.”

As a result, owners of new and existing multifamily properties have had to offer concessions to lure tenants, such as offering up to three months of free rent.

Due to this, developers have paused several multifamily projects that have not yet started construction.

“You’re not going to see any new construction high-rises get built in the relative near term because the numbers don’t pencil,” said Yablon.

Read more about the apartment boom taking place throughout the city at the Philadelphia Business Journal.

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