Philadelphia, PA Multifamily Market Report Q3 2026

Philadelphia multifamily rent set a new high of $1,969 in Q3 2026, up 2.3% year over year, while vacancy edged down to 3.4%, 13 basis points tighter than a year ago and 152 basis points below the Q1 2024 peak. Trailing-12-month completions fell 41% to 6,044 units, and sales volume rose 15% to $2.3B. Absorption slowed, with 1,591 units in Q3 versus 2,275 in Q3 2025. This Matthews™ Philadelphia, PA Multifamily Market Report Q3 2026 covers demand, supply, pricing, and investment sales across 13 submarkets so owners, investors, and lenders can see where Philadelphia apartment fundamentals are strongest.

Key Findings

• Q3 absorption was 1,591 units versus 2,275 in Q3 2025, and trailing-12-month absorption of 6,345 units is down from 14,857 a year earlier.
• Vacancy is 3.4%, with Delaware County the tightest submarket at 1.8% and Center City Philadelphia the loosest at 4.8%.
• Rent of $1,969 is a record, and Bucks County leads rent growth at +3.8%.
• New supply is easing: Q3 completions were 1,690 units, 31% below last year’s 2,440, and trailing-12-month completions of 6,044 units are down 41%. Annual completions peaked at 10,624 units in 2024.
• Investors recorded $2.3B in Philadelphia multifamily sales over the trailing 12 months (+15%), at $189K per unit.

Philadelphia Multifamily Supply & Demand Dynamics

How is renter demand in Philadelphia?

Philadelphia absorbed 1,591 units in Q3 2026, compared with 2,275 in the same quarter last year. Trailing-12-month absorption of 6,345 units is down from 14,857 a year earlier. Vacancy is 3.4%, and average rent of $1,969 is up 2.3% year over year.

How many new apartments are being built in Philadelphia?

Philadelphia recorded 1,690 completions in Q3 and 6,044 over the trailing 12 months, down 41% from the prior 12-month period. Units under construction equal 2.4% of inventory and are concentrated in Center City Philadelphia, where they represent 5.7% of existing stock. The 10,521-unit pipeline equals about six and a half quarters of absorption at the trailing pace.

Philadelphia Multifamily Investment Market

What are Philadelphia multifamily cap rates and pricing?

Philadelphia multifamily cap rates average 6.14%, up for 19 straight quarters and 100 basis points above the Q4 2021 low of 5.13%. Pricing sits at $189K per unit, higher for two consecutive years. Sales volume reached $2.3B over the trailing 12 months, up 15% from the prior period, with $305M closing in Q3. The 2022 high-water mark was $4.6B. Owners planning a sale or refinance should underwrite to today’s cap rate, not the 2021 low.

Philadelphia Multifamily Submarket Highlights

Vacancy is lowest in Delaware County (1.8%), Lower Camden County (2.3%), Gloucester County (2.4%), and Bucks and Burlington counties (2.8% each). It is highest in Center City Philadelphia (4.8%), Southwest Philadelphia (4.7%), and Camden/Cherry Hill (4.1%). Rent growth is led by Bucks County (+3.8%), Camden/Cherry Hill (+3.1%), Center City Philadelphia (+3.0%), and North Montgomery County (+2.7%). Southwest Philadelphia is the only submarket with negative rent growth, at -0.4%. Construction is heaviest in Center City Philadelphia (5.7% of inventory), Wilmington (3.1%), and Northeast Philadelphia (2.8%).

Philadelphia Multifamily Market by the Numbers

• Vacancy: 3.4%
• Average rent: $1,969 (+2.3% year over year)
• Q3 2026 net absorption: 1,591 units
• Trailing-12-month completions: 6,044 units
• Under construction: 2.4% of inventory (10,521 units)
• Trailing-12-month sales volume: $2.3B (+15%)
• Average cap rate: 6.14%
• Price per unit: $189K

Philadelphia Multifamily Market FAQs

What is the Philadelphia apartment vacancy rate in Q3 2026?

The Philadelphia multifamily vacancy rate is 3.4% in Q3 2026, down 13 basis points from Q3 2025.

What is the average apartment rent in Philadelphia?

Average rent in Philadelphia is $1,969 in Q3 2026, a record and 2.3% higher than a year ago.

Which Philadelphia submarket has the lowest multifamily vacancy?

Delaware County has the lowest multifamily vacancy at 1.8%, followed by Lower Camden County at 2.3%.

What is the average multifamily cap rate in Philadelphia?

The average Philadelphia multifamily cap rate is 6.14% in Q3 2026, up for 19 consecutive quarters.

Previous Philadelphia Multifamily Market Reports

Compare this quarter with the prior one: read the Philadelphia, PA Multifamily Market Report Q2 2026.

The bottom line for owners: record rents, low vacancy, and easing completions favor owners, but slower absorption and a cap rate that has expanded for 19 quarters mean pricing discipline matters. Owners in tight suburban submarkets such as Delaware and Bucks counties hold the strongest position. Download the full report above for submarket charts and detail, or contact David Loving, Associate Market Leader in Philadelphia, to discuss your property.

Sources: Matthews™ Research, RealPage, RCA, CoStar Group, Inc., and BLS. Information is for reference only. Sources deemed reliable but not verified.