As $10,000 limits on deductions for state and local taxes are felt by residents of New York and New Jersey, the Pennsylvania suburbs of Philadelphia have become an affordable haven for those fleeing high taxes.  That newfound demand, coupled with a strong economy, has resulted in significantly higher home value appreciation in the Philadelphia suburbs.  Throughout the Mid-Atlantic, home values have appreciated at a slow 3% to 4% rate since 2014. Recently, Philadelphia’s home values broke from the trend with appreciation reaching 11% to 12% annually.

Builders are breathing easier as their long battle with margin pressure is easing up.  Landowners are pushing land prices up to capitalize on this strong market.  We believe that home values in the Philadelphia’s Pennsylvania suburbs will continue this strong pace through next year as the economy remains strong.