WHY RENTS ARE GOING UP IN PHILLY

Is the era of stable Philly rents coming to an end? In this episode of The Row Report, Kevin Moyer—Philadelphia property manager and attorney—breaks down the mathematical reality of the Philadelphia rental market. For the last few years, an influx of new inventory suppressed rents, giving tenants the upper hand with deals like "2 months free." But the data shows the tide is turning. With new construction drying up, the sunsetting of the 10-year tax abatement, and rising operational costs (insurance, taxes, and labor), we are reaching a new equilibrium. Whether you are a property owner, an investor, or a renter, understanding these supply and demand curves is essential for navigating the next operating cycle (2026–2028). 🕒 Timestamps: • 00:00 – Introduction: Why rents are rising in Philadelphia • 01:04 – The Operational Cycle vs. Market Price • 01:24 – The 2021 Permit Surge: Interest rates & Tax Abatements • 02:22 – How the "Glut of Inventory" suppressed rents in 2023-2025 • 03:30 – The New Equilibrium: Why new construction has dried up • 04:15 – The "Bottom Dropping Out": Fire loss, L&I, and aging units • 04:51 – Projections for 2027-2028: Reason for optimism for operators 🔑 Key Takeaways: • Supply & Demand: The massive splash of inventory from 2022-2024 has finally been "soaked up." • Rising Costs: Landlords are facing sharp increases in insurance, labor, and property taxes, forcing a new price floor. • The Abatement Effect: The sunsetting of Philadelphia’s tax abatement program in 2021 jump-started a construction boom that is now over. • Operational Optimism: If you’ve been hanging on by the skin of your teeth, the numbers on your books are about to start making sense again.