Airbnb Philadelphia: Should You Invest?

How are things looking for Airbnb Philadelphia in the US housing market? Does investing in real estate in Philly make financial sense?

Table of Contents

1. Should You Invest in Airbnb Property in Philadelphia?
2. 10 Reasons Why Investing in Airbnb Philadelphia Is a Good Idea
3. 10 Best Neighborhoods in Philadelphia for Airbnb Investment
4. Bottom Line

Airbnb property investments are experiencing an all-time high across the US. Usually, investing in an Airbnb rental property offers higher cash on cash return, so it’s no surprise that many real estate investors are leaning toward such kinds of properties.

To add to it, Airbnb Philadelphia’s long been a popular choice among investors due to the significant property appreciation and lower real estate prices. And with plenty of visitors each year, it might be a good time to purchase an Airbnb rental in Philly.

If you’re considering investing in Airbnb Philadelphia and hope to uncover some solid reasons for doing so—along with a full scoop on the top-rated neighborhoods—be sure to keep reading.

Should You Invest in Airbnb Property in Philadelphia?

There’s no shortage of convincing reasons to invest in Airbnb property, especially in Philadelphia. The potential cash on cash return and the cap rate are much higher for Airbnb Philadelphia, PA, than they are for traditional rentals in the area.

In the last few years, the Pennsylvania real estate market continued to show growth trends. With plenty of visitors and tourists in the city, the demand for Airbnb rentals is at an all-time high. Plus, the laws and regulations regarding short-term rentals are generally favorable.

Philadelphia’s real estate market is almost too good to be true.

So yes, you should invest in a vacation rental for Airbnb Philadelphia PA. In fact, we’ll go as far as to say that Pennsylvania’s largest and most populated city is among the best locations to invest in Airbnb property right now.

10 Reasons Why Investing in Airbnb Philadelphia Is a Good Idea

If you need a reason to buy investment property in Philadelphia, you’ll find not one, but ten reasons why investing in Airbnb Philadelphia is an excellent idea below.

1. Low Cost of Living

Despite being quite large and quite populated, Philadelphia is one of the most affordable cities in the US. The cost of living in Philly is 3% lower than the national average, making it relatively cheap to live in the city.

A low cost of living can attract more tourists, which means you can also get more visitors to your Philadelphia Airbnb investment property. Plus, with the lower cost of living, the price of running a business is lower, and so are the costs of housing and labor.

2. Stable Economy

Philadelphia’s economy suffered fewer issues compared to the rest of the US during the pandemic. Currently, the city is seeing one of the largest GDPs in the world, thanks to its diverse economy, focusing primarily on information technology and the service industry.

The hospitality sector and tourist attractions make up a large portion of Philadelphia’s economy, making it one of the top places to visit in the US—and allowing you to get more visitors for your Airbnb business.

3. Good Real Estate Market

Many people consider the Philadelphia real estate market an attractive location—and it’s luring in more and more investors every day. Property prices are lower than in many large cities in the US, meaning purchasing a new Airbnb property is relatively affordable.

Acquiring a Pennsylvania investment property is now cheaper than it used to be, making this year an excellent time to buy.

Related: The Best Comparative Market Analysis Tools for Beginner Investors

4. A Haven for Sports Fans

Philadelphia is well-known for hosting professional sports teams, and that’s reason enough to visit the city for many sports enthusiasts out there. Philly is home to seven large sports teams—and the stadiums are modern, accommodating plenty of visitors.

Plus, there is the 300-mile long Circuit Trails for those who prefer to stay active rather than just watch sports. The circuit comprises hiking trails stretching through nine counties, making them perfect for visitors that want to spend some time in nature during their stay.

5. Variety of Public Gardens

Public gardens are incredibly popular among tourists, as well, as they allow the visitors to see beautiful flowers and trees that, in many cases, can’t be seen in nature. You’ll be glad to know that Philadelphia is home to 30 public gardens—more than most cities in the world.

Bartram’s Garden is the most visited public garden in Philly. It’s the oldest public garden in all of North America, holding the oldest ginkgo tree in the US. The garden is also home to many native and exotic plants spread over 50 acres of land, making it a great tourist attraction.

6. Variety of Recreational Activities

The Pocono Mountains are just a short trip away from Philadelphia, and there are various activities to enjoy in the mountains during the entire year. The lakes on the Pocono Mountains are perfect for picnics and leisure activities for tourists looking to spend a day outdoors.

Oh, and did you know that Fairmount Park is one of the largest city parks in the world? It covers over 9,0000 acres of land surrounded by woods and lakes. Many historic houses are located in Fairmount Park, allowing visitors to combine their outdoor time with learning more about the city and its history.

7. Historic Attractions

Speaking of history, Philadelphia is one of the most important cities in the US. The Liberty Bell Center alone attracts over a million sightseers every year. Many also visit the Independence Hall and Congress Hall, where the Declaration of Independence was written.

The Museum of Revolution is a notable historical attraction in Philadelphia, telling the story of the legendary war and fight for independence. Another place tourists will certainly appreciate is the President’s House, which is the home of the first American president, George Washington, and the first executive mansion in the USA.

It’s safe to conclude that Philadelphia will never fail to attract new tourists because of its rich history.

8. Quality of Life

The quality of life is relatively high in Philly, making it one of the best places to live in the entire country. With a rich history, plenty of jobs, and a stable economy, the city attracts more people by the day.

What about education?

Penn State is a local Ivy League school located in Philadelphia, with more than 100 colleges in the Philadelphia area (besides Penn State) to choose from education-wise.

Even more so, the city is incredibly family-friendly, with lots of places to visit with small children. And for people looking to go partying, Philly offers exciting nightlife, too.

9. Art and Culture

The art and culture community is very present in the city of Philadelphia, being one of the most vibrant, art-oriented communities in the US. It’s no wonder that Philly is a haven for many artists and artsy tourists, given that it’s home to plenty of museums and art events.

The city is also home to a few world-class museums, such as the Academy of Fine Arts and the Philadelphia Museum of Art, which is one of the most notable museums in the country.

The Philadelphia Museum of Art hosts concerts, festivals, and various other events throughout the year. It holds world-famous masterpieces for visitors to enjoy, as well.

And for up-and-coming artists, the city offers two excellent art schools.

10. Trendy Waterfront

The Delaware River waterfront is an incredibly popular meeting spot for residents and visitors in Philadelphia. Many people like to cool down by the river during the hot and damp summer days on the two famous piers—the Cherry Street pier and Race Street pier—while enjoying the rich street food culture of the city.

The waterfront houses exclusive restaurants, running trails, and children-friendly parks. It hosts several festivals and attractions throughout the year, too. Plus, the visitors can enjoy the view of the Benjamin Franklin Bridge, which connects Philadelphia to New Jersey.

10 Best Neighborhoods in Philadelphia for Airbnb Investment

Philadelphia is a large city and, therefore, is made up of many different neighborhoods. And, of course, not every neighborhood will be worth investing in—meaning that finding a suitable spot for your real estate investment can prove to be rather challenging.

Luckily, we’ve conducted an Airbnb analysis of the city and found the ten best neighborhoods for Airbnb Philadelphia investments according to the latest Mashvisor Airbnb data. Scroll down to see the best locations that promise you an attractive return on investment, arranged from highest to lowest in terms of Airbnb cash on cash return.

1. Powelton

• Number of Airbnb Listings: 488
• Monthly Airbnb Rental Income: $2,067
• Airbnb Cash on Cash Return: 6.80%
• Airbnb Cap Rate: 7.12%
• Airbnb Daily Rate: $116
• Airbnb Occupancy Rate: 68%
• Number of Listings for Sale: 2
• Median Property Price: $177,450
• Average Price per Square Foot: $164
• Days on Market: 77
• Walk Score: 93

2. Yorktown

• Number of Airbnb Listings: 572
• Monthly Airbnb Rental Income: $3,195
• Airbnb Cash on Cash Return: 6.04%
• Airbnb Cap Rate: 6.19%
• Airbnb Daily Rate: $140
• Airbnb Occupancy Rate: 55%
• Number of Listings for Sale: 1
• Median Property Price: $315,000
• Average Price per Square Foot: $273
• Days on Market: 82
• Walk Score: 85

3. Newbold

• Number of Airbnb Listings: 468
• Monthly Airbnb Rental Income: $2,982
• Airbnb Cash on Cash Return: 5.75%
• Airbnb Cap Rate: 5.90%
• Airbnb Daily Rate: $149
• Airbnb Occupancy Rate: 63%
• Number of Listings for Sale: 17
• Median Property Price: $328,847
• Average Price per Square Foot: $264
• Days on Market: 46
• Walk Score: 97

4. Sharswood

• Number of Airbnb Listings: 479
• Monthly Airbnb Rental Income: $2,810
• Airbnb Cash on Cash Return: 5.36%
• Airbnb Cap Rate: 5.51%
• Airbnb Daily Rate: $136
• Airbnb Occupancy Rate: 59%
• Number of Listings for Sale: 8
• Median Property Price: $385,175
• Average Price per Square Foot: $259
• Days on Market: 67
• Walk Score: 82

5. Dickinson Narrows

• Number of Airbnb Listings: 548
• Monthly Airbnb Rental Income: $3,367
• Airbnb Cash on Cash Return: 4.98%
• Airbnb Cap Rate: 5.09%
• Airbnb Daily Rate: $135
• Airbnb Occupancy Rate: 66%
• Number of Listings for Sale: 17
• Median Property Price: $420,370
• Average Price per Square Foot: $290
• Days on Market: 69
• Walk Score: 95

6. Old Kensington

• Number of Airbnb Listings: 557
• Monthly Airbnb Rental Income: $3,219
• Airbnb Cash on Cash Return: 4.79%
• Airbnb Cap Rate: 4.89%
• Airbnb Daily Rate: $137
• Airbnb Occupancy Rate: 58%
• Number of Listings for Sale: 18
• Median Property Price: $434,867
• Average Price per Square Foot: $308
• Days on Market: 150
• Walk Score: 93

 7. East Passyunk

• Number of Airbnb Listings: 503
• Monthly Airbnb Rental Income: $3,103
• Airbnb Cash on Cash Return: 4.74%
• Airbnb Cap Rate: 4.86%
• Airbnb Daily Rate: $148
• Airbnb Occupancy Rate: 65%
• Number of Listings for Sale: 17
• Median Property Price: $520,759
• Average Price per Square Foot: $331
• Days on Market: 75
• Walk Score: 98

8. West Poplar

• Number of Airbnb Listings: 895
• Monthly Airbnb Rental Income: $3,487
• Airbnb Cash on Cash Return: 4.72%
• Airbnb Cap Rate: 4.81%
• Airbnb Daily Rate: $138
• Airbnb Occupancy Rate: 58%
• Number of Listings for Sale: 3
• Median Property Price: $431,633
• Average Price per Square Foot: $279
• Days on Market: 63
• Walk Score: 91

9. Graduate Hospital

• Number of Airbnb Listings: 920
• Monthly Airbnb Rental Income: $3,327
• Airbnb Cash on Cash Return: 4.02%
• Airbnb Cap Rate: 4.11%
• Airbnb Daily Rate: $133
• Airbnb Occupancy Rate: 68%
• Number of Listings for Sale: 31
• Median Property Price: $509,681
• Average Price per Square Foot: $342
• Days on Market: 47
• Walk Score: 94

10. East Poplar

• Number of Airbnb Listings: 808
• Monthly Airbnb Rental Income: $3,278
• Airbnb Cash on Cash Return: 3.94%
• Airbnb Cap Rate: 4.04%
• Airbnb Daily Rate: $141
• Airbnb Occupancy Rate: 59%
• Number of Listings for Sale: 13
• Median Property Price: $533,046
• Average Price per Square Foot: $326
• Days on Market: 95
• Walk Score: 90

The data outlined here was generated with the help of Mashvisor’s Airbnb calculator to give you real insights into the potential profitability of your investment. Be sure to try it when deciding on your next short-term rental property investment.

Bottom Line

The bottom line is that investing in Airbnb Philadelphia is a fantastic idea. Several neighborhoods in the city guarantee an excellent return on investment that will surely increase your profits.

The Pennsylvanian city offers a lot to visitors, too, which is the reason behind the growing popularity of Philadelphia Airbnb real estate.

So, if you’re still wondering whether investing now is a good idea—it absolutely is.

Mashvisor real estate investment tools can make the search for the best Airbnb property so much easier, showing you only the hottest Airbnb Philadelphia housing market locations. It factors in the most relevant metrics, such as the cash on cash return and cap rate, in addition to several other metrics you can select yourself.

Click here and start your free 7-day trial on Mashvisor, followed by 15% off for life.