Owning a home in Philadelphia is more expensive than renting, a trend observed in all 100 of the nation’s largest metropolitan areas, write Sami Sparber and Isaac Avilucea for AXIOS Philadelphia.

The median monthly gross rent in Philadelphia is $1,567, while the median housing cost with a mortgage is $2,199, making homeownership $632 more expensive per month than renting.

Overall, as housing costs rise nationwide, homeowners with a mortgage pay on average 37 percent more each month than renters.

Mayor Cherelle Parker is aiming to address Philadelphia’s shortage of affordable housing and declining homeownership rates with an initiative to build 13,500 new homes and preserve 16,500 existing structures. The plan was approved by the City Council earlier this year.

Compared to last year, Philadelphia home sales are down 14 percent, with the average price climbing nearly three percent to $376,000. In turn, the city’s developers are focusing on luxury apartment projects to appeal to long-term renters as they wait for home prices to stabilize.

Philadelphians now have the tough choice of either committing to “paying 10 years of a mortgage or paying rent month-to-month and enjoying the flexibility,” said Drexel University economist Kevin Gillen.

Read more about the nuances of renting and owning in Philadelphia in AXIOS Philadelphia.

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