The pandemic acted as a powerful catalyst, accelerating existing trends and creating entirely new ones.
Cash Purchases Dominate High-End Sales
Cash is king for Pennsylvanias wealthiest homebuyers.
That said, transaction volume remains healthy and inventory has ticked up, which realtors view positively.
Robin R. Gordon @ BHHS Fox & Roach-Haverford via Coldwell Banker
The top Philly neighborhoods (Rittenhouse, Society Hill, etc.)
still boast strong appeal just at more measured prices.
The intense competition reflects a limited inventory of high-quality homes in that bracket.
Notably, 90% of those $1M+ sales occurred in the suburbs, not the city.
This suburban boom saw Main Line estates and other upscale suburban properties trading quickly at premium prices.
By 2021-2022, as pandemic effects eased, the frenzy subsided but suburban markets have remained elevated.
Without a daily office commute, many affluent professionals re-evaluated where they want to live.
Conversely, remote work enabled other high earners to relocate to quieter locales while keeping big-city jobs.
Philadelphia, in particular, has been a magnet for New York buyers seeking more bang for their buck.
Some wealthy buyers now live in Philadelphia and commute to NYC once or twice a week.
With a $1 million budget in Philadelphia, buyers find themselves shopping at the very high end e.g.
large historic townhomes or luxury condos whereas that sum might barely buy a starter apartment in New York.
It underscores Pennsylvania cities appeal as a cost-effective alternative for those who might otherwise be in pricier coastal markets.
High-earning households ($500k+ annually) often face significant state and local taxes in PA (e.g.
South Florida in particular saw a surge of new residents (and dollars) from the Northeast.
Pennsylvanias neighbors (NY, NJ) were similarly affected.
Many of these buyers were from New York/New Jersey, drawn by nature and seeking pandemic getaways.
High-income individuals contributed to this trend, picking up properties in emerging neighborhoods to flip or rent out.
For many affluent buyers, real estate offered both lifestyle benefits and financial returns e.g.
a lakefront second home that doubles as a lucrative short-term rental on Airbnb.
In the Poconos, this became so widespread post-2020 that it upset the balance between locals and part-timers.
Long-time residents grew concerned as neighborhoods saw transient renters and party crowds.
Elsewhere, cities like Philadelphia have also enacted stricter STR regulations (e.g.
a 2022 Philly law requiring licenses for Airbnbs) to control investor activity.
However, the community impact from housing scarcity for locals to noise concerns has led to a backlash.
Outdoor amenities became crucial: buyers love large yards, patios, rooftop decks, and pools.
In Pennsylvania, affluent homeowners are increasingly willing to pay a premium for eco-friendly features and energy efficiency.
Popular sustainable upgrades include Energy Starrated appliances and windows, LED lighting systems, and high-efficiency HVAC units.
Pennsylvania has incentivized green building too (e.g.
High-performance homes with LEED or other green certifications are now marketed as luxury products in themselves.
Expect this trend to grow as younger, tech-savvy millionaires prioritize reducing their carbon footprint while living in comfort.
High-income Pennsylvanians are equipping their homes with features that promote wellness, convenience, and safety.
Tech is playing a huge role as well.
This could mean kitchens with built-in herb gardens and circadian lighting, or bathrooms with aromatherapy and chromotherapy features.
The integration of health and technology in home design has become a clear expectation in the luxury segment.
This trend is evident in Philadelphias wave of new luxury condo towers and townhome developments.
Overall, this trend means Pennsylvanias luxury landscape is skewing newer and more modern.
This generational shift brings different tastes and values.
Younger affluent buyers in Pennsylvania tend to define luxury less by opulence and more by authentic experiences and community.
Sustainability (as mentioned) is part of this ethos, as is technology integration.
They want to be close to restaurants, parks, and people.
