สำเนาบทสนทนา 🔗
WEBVTT
00:00:00.200 --> 00:00:02.750
Here's the fact that surprises almost everyone.
00:00:02.810 --> 00:00:12.990
the most linguistically diverse zip code in the entire state of Pennsylvania is not Center City, it's not University City, it is 19120, Olney in Upper North Philadelphia.
00:00:13.390 --> 00:00:30.300
Korean, Cambodian, Vietnamese, Colombian, Jamaican, Portuguese, African, wave after wave of immigrant families bought row homes here, opened businesses on the Fifth Street, and kept this neighborhood full while other parts of North Philly emptied out.
00:00:30.600 --> 00:00:36.840
one of the biggest local news outlets in the city called only the neighborhood that grew without gentrification.
00:00:37.039 --> 00:00:40.899
But here's the twist for landlords, and it's the theme of today's episode.
00:00:41.229 --> 00:00:43.119
this market barely shows up on MLS.
00:00:43.140 --> 00:00:47.570
If you pull the official numbers, you would think almost nothing rents here.
00:00:47.960 --> 00:00:58.750
The reality is completely different, and today I'm going to show you both sets of data, explain where the rental market lives, and break down the five very different pockets inside this one zip code.
00:01:09.685 --> 00:01:19.594
Welcome back to the Philly Landlord Guy, the show built for rental owners, property managers, and investors who want real, no-fluff facts about Philadelphia market, neighborhood by neighborhood.
00:01:19.995 --> 00:01:38.314
I'm your host, Yuriy Skripnichenko, licensed real estate broker, and certified property manager In today's episode I will break down 19120, one of the most populous zip codes in Philadelphia, home to about 66,000 people, and one of the most misunderstood neighborhoods.
00:01:38.715 --> 00:01:40.644
Let's start with the citywide picture.
00:01:40.844 --> 00:01:46.614
Across Philadelphia in August, there were 1,799 units listed and 1,608 units rented.
00:01:46.894 --> 00:01:48.584
89% absorption rate.
00:01:48.605 --> 00:01:54.715
The median listed price was$1,850, and the median rented price was$1,800.
00:01:54.715 --> 00:01:57.954
Just a$50 gap, Average days on the market, 46 days.
00:01:57.954 --> 00:01:59.995
Months of supply, 2.2.
00:02:00.424 --> 00:02:02.984
That is tighter than we saw through most of the summer.
00:02:03.424 --> 00:02:09.164
Current September inventory is sitting at 4,000 units, down from 4345 a year ago.
00:02:09.284 --> 00:02:12.995
The market has absorbed the spring supply wave and firmed up.
00:02:13.455 --> 00:02:17.354
So that's the city baseline, accurate price, 46 days on the market.
00:02:17.675 --> 00:02:25.074
Keep that day on the market number in your head because what I'm about to show you for 19120 is going to look strange.
00:02:25.435 --> 00:02:36.384
Let me paint the full picture of the zip code because 19120 is big and changes depending on where you are standing, The story here is growth without gentrification.
00:02:36.395 --> 00:02:43.905
Starting in the 1980s, Korean families began moving into Olney and opening businesses along North 5th Street.
00:02:43.944 --> 00:02:45.805
Then came Portuguese families.
00:02:46.215 --> 00:02:49.794
Fifth Street was affectionately known as Ruasinka for a stretch.
00:02:50.094 --> 00:02:54.664
Then Cambodian, Vietnamese, Colombian, Jamaican, and African families.
00:02:55.044 --> 00:03:02.805
The Cambodian Association of Greater Philadelphia and the Korean Community Development Service Center still operate on Fifth Street today.
00:03:03.004 --> 00:03:05.395
Here's why this matters to you as a landlord.
00:03:05.544 --> 00:03:16.185
Unlike other parts of North Philadelphia, vacancy level in Olney stayed low Immigrant families bought the row homes, maintained them, and filled them.
00:03:16.194 --> 00:03:19.275
The neighborhood revitalized without displacement.
00:03:19.705 --> 00:03:24.974
No luxury towers, no massive rent spikes, just steady family-driven demand.
00:03:25.175 --> 00:03:30.094
This is a fundamentally stable rental market, and the tenant profile follows from that.
00:03:30.585 --> 00:03:40.185
The average household size in core Olney is 4.8 people, more than double the city average of 2.2.
00:03:40.185 --> 00:03:43.335
These are large multi-generational families.
00:03:43.715 --> 00:03:47.064
What they need is the three-plus bedrooms.
00:03:47.115 --> 00:03:56.615
A renovated three-bedroom row home is the bread-and-butter product, Which is exactly why the comps report we will look at in a minute focuses on three-bedroom, one-bath units.
00:03:56.814 --> 00:04:00.384
So here's the five pockets because one nine one two zero is not one market.
00:04:00.585 --> 00:04:05.495
Olney core centered on the Fifth Street corridor and Fisher Park.
00:04:05.544 --> 00:04:11.794
The 23-acre park donated by Joseph Wharton himself bought back in 1908.
00:04:12.521 --> 00:04:15.792
Median household income around$54,000 for the zip.
00:04:16.221 --> 00:04:21.581
Classic two-story, three-bedroom row homes, roughly 16, 17 square feet.
00:04:21.982 --> 00:04:25.002
This is the strongest, most stable pocket of the area.
00:04:25.442 --> 00:04:28.822
Fenwick, the northwest edge along Broad Street.
00:04:29.021 --> 00:04:36.091
It's 1920s row homes, some twins and singles, a few high-rise apartment buildings.
00:04:36.572 --> 00:04:38.211
Its superpower is transit.
00:04:38.411 --> 00:04:56.201
The Fenrock Transportation Center is the north terminal of the Broad Street Line plus three regional rail lines Longcrest, the northeast section, median income around 54,000, poverty near the city average, smaller households, steadier blocks.
00:04:56.552 --> 00:05:06.341
Fledonville, the southeast, extremely dense, heavily Latino, very working class, poverty rate about 40%, twice the city average.
00:05:06.692 --> 00:05:12.192
Price sensitive, large families, a market where condition and price matter more than anything.
00:05:12.391 --> 00:05:15.031
Olney Southwest the toughest
Load full transcript
part.
00:05:15.232 --> 00:05:22.682
Per capita income is lower than 96% of US neighborhoods, and two-third of children live below the poverty line.
00:05:22.682 --> 00:05:24.922
This is heavily voucher-driven territory.
00:05:25.201 --> 00:05:30.471
Not a bad investment, but a completely different business with hands-on management requirements.
00:05:30.672 --> 00:05:32.572
Block selection here is everything.
00:05:32.641 --> 00:05:39.351
Check atlas.phila.gov for violations or surrounding parcels before you buy anything.
00:05:39.552 --> 00:05:46.612
Now here is where 19120 gets generally interesting and why I'm going to show you two different reports today.
00:05:46.701 --> 00:05:51.942
First, the August bright MLS numbers for 19120.
00:05:51.971 --> 00:05:57.041
In August, there were seven units listed and five units rented through the MLS.
00:05:57.502 --> 00:06:04.291
Seven in a zip code of 66,000 people and roughly 24,000 households.
00:06:04.711 --> 00:06:06.851
The listed median was 1,500.
00:06:06.872 --> 00:06:14.927
The sold median was higher at 1,664, and the days on the market on those few units was 101.
00:06:15.327 --> 00:06:17.788
But it's a tiny sample size and that's the story.
00:06:17.848 --> 00:06:22.338
Compare that to other zip codes where we had hundreds rentals in the same month in the same zip.
00:06:22.538 --> 00:06:28.577
What this tells you is that the vast majority of 19120 rental market happens off the MLS.
00:06:28.908 --> 00:06:32.608
other rental websites For you as an investor, that means two things.
00:06:32.617 --> 00:06:41.358
One, you cannot judge the zip code by MLS stats alone, And two, you need to list where tenants actually look at, not just MLS.
00:06:41.788 --> 00:06:53.007
So let's look at the rental market second report, a rent engine comps analysis we ran at TrustArt Realty for a three-bedroom, one-bath row home in 19120, the bread-and-butter product I mentioned.
00:06:53.338 --> 00:07:06.697
One note to mythology, this pulse comes from about two-mile radius, so it captures 19120 plus the immediately surround areas, Fultonville, parts of Frankford, Longkirst, Logan.
00:07:06.798 --> 00:07:08.127
over the last 60 days.
00:07:08.617 --> 00:07:13.728
Hundred and thirty-seven total units in the market, 110 available, only 27 rented.
00:07:13.927 --> 00:07:17.908
That is a supply to demand ratio of about four to one.
00:07:18.038 --> 00:07:20.708
It's oversupplied right now for this product type.
00:07:21.127 --> 00:07:23.298
The median rent, 1,600.
00:07:23.408 --> 00:07:29.023
They range from 1,200 to 1,995 But here's the number that matters the most.
00:07:29.062 --> 00:07:33.497
The median days on the market for the units that actually rented was 26 days.
00:07:33.646 --> 00:07:36.937
The unit that rented moved in under a month.
00:07:36.966 --> 00:07:46.737
Meanwhile, the available pile is full of listings sitting for 100, 200, even 400 days, many with multiple price cuts.
00:07:46.797 --> 00:07:54.326
One listing started at 1,775 and has cut four times down to 1,395, and it's still sitting.
00:07:54.526 --> 00:08:00.699
This is the sharpest example of pricing lessons In oversupplied market like this, there is no middle ground.
00:08:00.790 --> 00:08:08.750
Price at the market around 1,500 to 1,550 for a standard three-bed, and you will rent in three or four weeks.
00:08:08.910 --> 00:08:24.963
Price at 1,800 because the renovated one down the block got that, and you will join the 100-day pile, then cut your price and lose three months of rent And those three months of vacancy on a 1,600 unit is$4,800.
00:08:25.362 --> 00:08:31.593
the$100 a month premium you were holding out for takes four years to earn back.
00:08:31.833 --> 00:08:33.062
The math never works.
00:08:33.523 --> 00:08:44.712
One more note on what earns a premium here, looking through the rented comps, the units that hit 1719 or 1995 almost all had something extra.
00:08:44.732 --> 00:08:54.253
In-unit laundry shows up over and over, renovated interiors, occasional parking, newer kitchens, newer bathrooms.
00:08:54.562 --> 00:09:02.842
For large families doing laundry for five or six people, an in-unit laundry is not a luxury in the ZIP code, it's a rent driver.
00:09:02.993 --> 00:09:06.533
all new owners got hit hard in recent reassessments.
00:09:06.802 --> 00:09:12.462
I've seen properties where the assessment jumped over 70% in 2023, and again this year.
00:09:12.482 --> 00:09:17.163
the formal Board of Revision of Taxes appeal is still open until October 5th.
00:09:17.653 --> 00:09:23.076
If your 19120 assessment looks wrong, you still have a path.
00:09:23.136 --> 00:09:26.037
Go back to your assessment episode for the full walkthrough.
00:09:26.287 --> 00:09:29.246
now quick thank you to our sponsor, TrustArt Realty.
00:09:29.397 --> 00:09:37.576
That rent engine comps report I just walked through, that is exactly the kind of analysis TrustArt Realty runs for clients before we ever set a price.
00:09:37.826 --> 00:09:40.966
Real comps, real absorption data, no guesswork.
00:09:41.346 --> 00:09:53.383
If you own in 19120 or anywhere in Philadelphia and want to know what your unit should actively rent in today's market, we are offering all of our listeners a free rental analysis.
00:09:53.413 --> 00:10:01.302
Reach out at trustartrealty@phillylandlordguy.com or go to trustartrealty.com and schedule that consultation.
00:10:01.503 --> 00:10:02.552
Okay, let's land this.
00:10:02.873 --> 00:10:12.903
19120 is one of the most stable, high demand rental markets in the city, built on decades of immigrant families who bought, and filled these row homes.
00:10:13.133 --> 00:10:16.812
But the MLS barely sees, so do your homework with real comps.
00:10:17.212 --> 00:10:18.273
Know your pocket.
00:10:18.602 --> 00:10:23.940
A block of Fifth Street and a block in Olde Southwest are different businesses.
00:10:24.139 --> 00:10:30.799
Serve the actual tenant, big families who need three-plus bedrooms, and value in-unit laundry and possibly parking.
00:10:31.000 --> 00:10:43.386
And in oversupplied moments like right now, price at the market,$1,500 to$1,550, and rent in 26 days, or overprice and cede$400.
00:10:43.586 --> 00:10:49.447
If this was useful, subscribe, leave a review, and drop your zip code questions in the notes.
00:10:49.586 --> 00:10:53.547
Keep your properties clean, stay legal, and I'll catch you in the next episode.