Despite the increase, Philadelphia “is still much more on the affordable end” out of the major metro areas, said Sheharyar Bokhari, senior economist at Redfin. “Especially for the east coast, it’s holding up in terms of opportunity.”Traditionally, many households become homeowners by purchasing starter homes, some of the smallest and most affordable properties.
Because housing supply isn’t meeting demand, prices aren’t coming down. “That makes it super difficult for someone trying to come into the market,” Bokhari said, especially renters trying to save whileRedfin’s analysis assumed that home buyers would be able to make down payments of 20%, butAnd first-time buyers usually put down less than repeat buyers who can use the proceeds of a home sale to pay for another property.