Full Transcript for 19146 South Philly Deep Dive: How Point Breeze & Graduate Hospital Doubled in Value

distinct neighborhoods, and they are generally different from one another. 00:02:52.968 --> 00:03:00.639 Graduate Hospital, sometimes called GeHo or Southwest Center City, is the northernmost expensive section. 00:03:00.658 --> 00:03:06.229 It bor- it borders Rittenhouse and Fiddler Square, and it has fully arrived. 00:03:06.278 --> 00:03:12.649 This is a premium neighborhood now, walkable, close to Center City jobs, close to the hospitals and universities. 00:03:13.098 --> 00:03:22.908 From 2000 to 2021, Graduate Hospital had the highest home sale activity of any neighborhood in the entire city. 00:03:23.359 --> 00:03:26.479 There were more transactions than there were homes. 00:03:26.848 --> 00:03:30.079 This is where your highest rents in the zip code live. 00:03:30.679 --> 00:03:36.748 Point Breeze, the central and southern chunk is the transformation story in progress. 00:03:37.118 --> 00:03:43.519 10 years ago, this was largely a working class neighborhood with a lot of distressed and vacant properties. 00:03:44.299 --> 00:03:48.058 Today, it's one of the most active new construction markets in the city. 00:03:48.368 --> 00:04:04.408 Drive down Point Breeze Avenue, and you will see brand-new construction row homes with roof decks and city skyline views, most of them carrying 10-year tax abatements, sitting right next to an old century-old row homes that haven't been touched. 00:04:04.929 --> 00:04:10.308 That block-by-block contrast is the entire investment thesis for this zip code. 00:04:10.938 --> 00:04:18.259 Grace Ferry, the southern edge along the Schuylkill, is the earlier stage, more affordable section. 00:04:18.338 --> 00:04:27.908 It's where a lot of value add and first-time buyer activity is now, including new construction marketed specifically as Point Breeze border pricing. 00:04:28.389 --> 00:04:34.059 If you want in at a lower entry point, this is the part of the zip code to study. 00:04:34.365 --> 00:04:58.536 According to a 2026 Inquirer analysis of census d-data, the Graduate Hospital/Point Breeze/Grace Ferry cluster saw its median household income more than double in a decade from about forty-seven thousand eight hundred in the 2010-2014 period to roughly ninety-six thousand nine hundred in 2020-2024. 00:04:58.956 --> 00:05:06.826 Over that same stretch the citywide median only rose from forty-nine thousand six hundred dollars to sixty-two thousand dollars. 00:05:07.545 --> 00:05:13.896 So this pocket of South Philly went from below the city average to nearly thirty-five thousand dollars above it. 00:05:14.396 --> 00:05:26.636 That's an enormous shift, and it's driven largely by an influx of healthcare and educational professionals working at the hospital and universities just to the north and west of the area. 00:05:27.745 --> 00:05:39.336 Grace Ferry on its own has a population around twenty-two thousand eight hundred residents with a median age of thirty-six, young working professional. 00:05:39.406 --> 00:05:42.255 That's your tenant base in the growth pockets. 00:05:42.896 --> 00:05:56.096 That income doubling means longtime residents, many of them working-class families who've been in these homes for generations, are now under real displacement distress or pressure. 00:05:56.365 --> 00:06:04.055 The investment fund flagged that exact cluster as one of the highest displacement risk areas in the city. 00:06:04.504 --> 00:06:07.915 As a professional operator, you should understand that dynamic. 00:06:07.995 --> 00:06:19.904 It affects tenants' relations, it affects the politician climate around the landlords, and it's part of, I think it's part of why the city is pushing so hard on tenants' protection. 00:06:20.514 --> 00:06:27.564 Being a good, fair landlord in a neighborhood like this isn't just ethics, it's smart long-term business. 00:06:27.730 --> 00:06:33.170 here's what's driving a lot of the investor math in 19146, the 10-year tax abatement. 00:06:33.370 --> 00:06:45.401 A huge share of new construction and gut rehab inventory in Point Breeze and Grays Ferry carries an abatement on the improvement value, which dramatically lowers the housing cost in the early years. 00:06:46.011 --> 00:06:54.990 That's a real advantage if you're acquiring newer product here, but it also means that you need to know exactly how many years left on the abatement before you buy. 00:06:55.500 --> 00:07:01.170 Because when it burns off, your tax bill will jump up and your cash flow changes. 00:07:01.591 --> 00:07:04.730 Always verify the remaining abatement term. 00:07:05.891 --> 00:07:10.091 Now, the July 2026 MLS numbers for 19146. 00:07:10.790 --> 00:07:18.040 There were 129 units listed and 117 units rented in July. 00:07:18.120 --> 00:07:20.620 A strong 91% absorption rate. 00:07:21.221 --> 00:07:31.721 End of the month's inventory, 191 units, The months of supply is just 1.5, well below the citywide 2.4. 00:07:31.870 --> 00:07:34.980 That's a generally tight, high-demand market. 00:07:35.060 --> 00:07:36.630 Inventory here moves. 00:07:37.081 --> 00:07:42.860 Days on the market, 42 days, five days faster than the citywide average of 47. 00:07:43.961 --> 00:07:50.771 Now the pricing, and this is where the one ZIP code, many markets theme shows up hard in the data. 00:07:50.781 --> 00:07:58.951 The median listed price was but the median rented price was$1,900. 00:07:58.951 --> 00:08:02.451 That's a big gap, about$445. 00:08:02.730 --> 00:08:09.560 But that gap isn't telling you landlords are overpricing the way it did in 19134 or 19143. 00:08:10.860 --> 00:08:12.540 It's telling you something different. 00:08:12.600 --> 00:08:17.391 19146 has a huge range of product. 00:08:17.451 --> 00:08:29.661 We've got brand new construction, luxury units in Graduate Hospital listing at$2,800 plus, and you've got older row homes in Grays Ferry pockets renting at$1,400. 00:08:30.211 --> 00:08:39.081 The median list is getting pulled up by the high-end new construction, while the

median rented reflects the full mix of what actually leased. 00:08:39.520 --> 00:08:47.561 The average rented price was$2,268, which confirms there is serious high-end activity here. 00:08:47.860 --> 00:08:53.600 The lesson, in 19146, you absolutely cannot price off the zip code median. 00:08:53.679 --> 00:09:01.710 A renovated Graduate Hospital unit and an unupdated Gr- Grays Ferry row home are two different businesses. 00:09:02.240 --> 00:09:05.220 Price to your specific block and your specific product. 00:09:06.289 --> 00:09:18.575 Current August inventory is 187 units at median listed price of$2,000, with the months of supply tightening even further to 1.6. 00:09:19.054 --> 00:09:22.835 So demand remains strong heading into the late summer. 00:09:23.197 --> 00:09:25.777 So how do you actually play in 19146? 00:09:26.258 --> 00:09:34.706 If you already own here, especially if you bought in Point Breeze or Grays Ferry before the last few years, you are sitting on significant appreciation. 00:09:35.157 --> 00:09:36.126 Know your equity. 00:09:36.126 --> 00:09:48.136 This might be the candidates for cash-out refi to fund your next acquisition, which is exactly kind of thing we talked about in the recent DSCR lend and appease it with Tim. 00:09:48.917 --> 00:09:54.797 If you're looking to buy in now, understand that Graduate Hospital is largely priced in. 00:09:55.057 --> 00:09:59.947 The value plays are in Grays Ferry and outer Point Breeze pockets. 00:10:00.267 --> 00:10:08.398 Ideally newer construction with abatement time remaining, or a solid rehab candidate on the block that's clearly turning. 00:10:08.856 --> 00:10:17.738 Walk the block, check the Atlas tool at atlas.phila.gov for violations and vacancy on surrounding parcels before you commit. 00:10:18.287 --> 00:10:24.177 And whatever you do here, price to the actual sub-neighborhood, not the zip code average. 00:10:24.216 --> 00:10:34.647 That is$445 gap between list and rent median exists precisely because people treat 19146 as one number. 00:10:35.187 --> 00:10:36.567 Don't make that mistake. 00:10:37.277 --> 00:10:40.297 Quick thank you to our sponsor, TrustArt Realty. 00:10:40.397 --> 00:10:51.256 In a zip code like 19146, where value swings block by block, pricing your unit correctly is the difference between renting it in 42 days and sitting empty forever. 00:10:51.647 --> 00:11:03.386 TrustArt Realty offers all listeners a free rental analysis, so you know exactly what your specific property should command, and a free management consultation if you're ready to hand it to a professional team. 00:11:03.746 --> 00:11:11.807 Reach out at trustartrealty@phillylandlordguy.com or go to trustartrealty.com to schedule that call. 00:11:12.336 --> 00:11:18.226 To wrap it up, 19146 is one of the strongest, most dynamic zip codes in Philadelphia. 00:11:18.236 --> 00:11:27.826 Income has doubled, demand is high, inventory moves in 42 days, and the months of supply is one of the tightest in the city. 00:11:28.297 --> 00:11:30.876 But it's absolutely not one market. 00:11:30.966 --> 00:11:42.746 Graduate Hospital, Point Breeze, and Grays Ferry are three different worlds, and your pricing, your product, and your tenant profile all have to match the specific block you are on. 00:11:43.336 --> 00:11:49.767 Know your abatement timelines, know your equity if you already own, and price to the pocket, not the zip code. 00:11:50.557 --> 00:11:56.856 If this was helpful, subscribe, leave a review, or drop your question for your zip code in the comments. 00:11:56.897 --> 00:11:58.917 I read them and answer them. 00:11:59.317 --> 00:12:04.206 Keep your properties clean, stay legal, and I will catch you in the next episode.