Pennsylvania Home Selling

Home prices and demand for housing in Pennsylvania continue to rise, driven by factors like a growing population, wage growth, and household formation. With inventory levels lagging behind demand, competition among buyers remains stiff, steadily pushing up prices.

Pennsylvania's median home sale price jumped 6.5% year over year, hitting an all-time high of $325,000 in June 2025. This figure sits below the national median of $462,000, and well below pricier bordering states like New York ($501,982) and Maryland ($433,735). However, median home prices among Pennsylvania's western neighbors — Ohio ($241,500) and West Virginia ($170,904) — continue to offer a more affordable entry point for investors.

An average of 10,635 homes are sold each month in Pennsylvania, representing a 3.8% decline year over year. Neighboring states like New York and Ohio report averages of around 11,000 and 10,000 homes sold per month, respectively. The average days on market (DOM) for homes listed in Pennsylvania is about 37, reflecting strong demand.

New private housing construction permits issued in the Commonwealth of Pennsylvania range from 1,800 to 2,300 each month (seasonally adjusted). This figure is considerably lower than neighboring New York State and Ohio, with monthly averages of 2,993 and 3,399 permits, respectively.

While the property tax rate in Pennsylvania varies by county, a median-priced home in the Keystone State averages an effective rate of 1.26%. This is slightly lower than Ohio's average of 1.35%, but more than double West Virginia's 0.5% average.

The number of foreclosures in Pennsylvania puts the state at 29th nationally, with a foreclosure rate of 1 in 5,820 as of October 2025. Though certain areas of Pennsylvania — like Sullivan, Philadelphia, and Greene counties — see higher rates of foreclosure, the state's overall rate is markedly lower than in surrounding states like Ohio (1 in 3,026), Maryland (1 in 3,440), and New York (1 in 4,274).

Thanks to its reasonable cost of living compared to many other Northeastern states, Pennsylvania presents a great opportunity for real estate investors seeking a solid return on investment (ROI). Additionally, the Commonwealth's stable and thriving economy generally reduces the risk of investing in property development, which may reduce some of the risks associated with real estate investments.

While the state has various laws and regulations that may impact real estate investments, its steady job market and sizable population can make rental properties a profitable investment, particularly in high-demand areas. Many towns, cities, and localities in the Commonwealth offer varying attractions that may assist individuals in making informed decisions to participate in the real estate industry in such places.

In Pennsylvania, the following areas may offer easier development opportunities and an attractive ROI for those looking to invest in real estate:

• Pittsburgh: This former manufacturing hub has now become one of the commonwealth's most desirable places to live. The overall housing market in Pittsburgh is balanced, with a typical sale price of about $270,000, which represents a modest year-over-year increase.
• Harrisburg: The state capital, with thousands of government jobs and proximity to major historical sites, is a viable place for real estate investment, as evidenced by a recent rise in median sales prices.
• Philadelphia: While the Philadelphia housing market tends to move slowly, it offers investors an opportunity to buy properties at below-average prices, renovate them, and resell them for a profit. And as one of the nation's largest cities, Philadelphia also has a strong rental market for longer-term investors seeking cash flows.
• Allentown: Allentown has become an attractive place for young people leaving urban centers in pursuit of more affordable housing and smaller-town life. As real estate development continues, home prices and rents are likely to increase, making Allentown a solid target for real estate investment.
• Reading: Reading's proximity to other cities — like Philadelphia, Trenton, and Wilmington, DE, makes it a good place for real estate investment. For patient investors with a more flexible time horizon, an investment in Reading could be rewarding over the long term.
• Erie: The strong local economy in Erie City makes it a relatively safe place for real estate investment.
• Williamsport: As the education and health sectors in Williamsport continue to grow, there's potential for increased rental demand, making the city an attractive target for real estate investment.
• Lancaster: Lancaster is one of the hottest zip codes in the country in 2025. The demand for housing continues to remain high, with buyers snapping up homes within just a few days of hitting the market.
• Scranton: Generally, home prices are low in Scranton compared to other similarly sized areas, but the city has strong cash flow potential.
• Chester: Besides its proximity to Philadelphia, properties in Chester go for lower median sales prices, offering potentially high appreciation for savvy investors.

It takes an average of 80 days to sell a house in Pennsylvania, including approximately 37 days to accept an offer and about 35 days to close the sale. The current DOM in the state typically reflects its status as a seller's market, as home supply is a little tight and buyers remain active.

Several factors may influence home sale timelines in the Keystone State. These typically include the time of the year, economic and real estate conditions (job market, home size, home price trends, demand, and supply, among others), the condition of the property, and the property type. Typically, homes in top condition located in desirable metro areas or cities with strong local economies tend to sell faster. Additionally, certain features — like the ones listed below — can make a home highly competitive, leading to a potentially faster sale.

Understanding the local zoning laws in Pennsylvania is crucial for those looking to invest in real estate development in the Keystone State, as it may directly impact their ROI. Besides aiding in the development of a particular area, certain zoning laws play an important role in determining property values and ensuring the property meets the needs of potential buyers. Different zoning classifications permitted on land in Pennsylvania typically determine what can be built and where.

As a real estate developer in Pennsylvania, failing to comply with local zoning laws and permits may lead to development delays, fines, and sometimes, legal issues. Potential buyers often request to see (and verify) a local zoning compliance document before purchasing a property to ensure it meets zoning regulations and is free from any legal problems.

Home sellers in Pennsylvania must clearly understand the following to avoid surprises and protect their investment:

• Areas with Strict Zoning Laws: Areas with strict zoning laws in Pennsylvania include Scranton, Radnor, Philadelphia, Haverford, and Hazleton.
• Areas with Less Bureaucratic Zoning Laws: Some municipalities in the rural and less populated areas in Pennsylvania — particularly in the Marcellus Shale region — don't have a single set of zoning laws. In these municipalities, it's important to contact the planning departments to help clarify any restrictions that may apply to real estate development projects.
• Areas Requiring Special Permits: In addition to zoning permits, some cities in Pennsylvania require investors looking to develop a property to obtain certain special permits, typically through a public hearing and approval from the zoning hearing board. For instance, in Chester City, after a zoning permit application is approved, a would-be developer must apply for a building permit. Similarly, a building permit is required in certain instances in the City of Philadelphia.
• Areas Requiring a Certificate of Occupancy Before Occupation: Generally, a certificate of occupancy (CO) is required for sales, changes in use, and major renovations to Pennsylvania properties. In some places, like the City of Philadelphia, a separate CO is needed to occupy each building on a property.
• Areas Requiring Approval From a Historic Commission: Certain places in Pennsylvania, including the City of Philadelphia, require anyone modifying historic properties or buildings to obtain approval from the Historic Commission. In other cases, an approval may be needed before using certain materials to build or renovate a structure to preserve the historic heritage of these neighborhoods.

Generally, real estate regulations exist to maintain the integrity of the real estate market, promote safety, and protect the rights of home sellers, buyers, tenants, landlords, and developers. Compliance with local real estate regulations in Pennsylvania is critical to helping avoid legal issues or disputes. These regulations may include local laws governing land use, property transactions, and construction.

Furthermore, adhering to local real estate regulations in the Commonwealth can help investors protect their business reputation and maximize property value. The real estate regulatory environment in different parts of the state may vary with strict regulations in some localities and more relaxed laws in other places.

Development-Friendly Areas

Areas with development-friendly real estate regulations often attract developers and other real estate investors. Such localities have various housing options and strong rental demand, making them excellent grounds for real estate investment. The following areas in Pennsylvania are generally known to have development-friendly laws and real estate regulations:

• Pittsburgh: The flexible zoning and development regulations are generally designed to encourage developers to build a mix of varying house types.
• Lancaster: Even though the city's development regulations focus on preserving its historic nature, they still support adaptive reuse projects and new construction.
• Philadelphia: The city's persistent efforts in streamlining its zoning and permitting process generally encourage real estate development.
• Chesterbrook: While Chesterbrook's development regulations are mostly designed to keep the city's unique character, they still permit certain new development to encourage real estate investors.
• Allentown: Both commercial and residential property growth are supported by the town's development-friendly regulations.

Moderately Regulated Areas

Although these areas generally offer some regulatory controls for real estate development, they have relatively flexible zoning and a straightforward permitting process in place to foster development. Real estate regulations in the following Pennsylvania cities and towns are not overly restrictive for real estate developers:

• Erie: The city has some incentives in place for redevelopment, and the zoning is fairly reasonable.
• Cranberry Township (Butler County): Although the zoning in Cranberry Township is relatively strict, it offers real estate developers an efficient permitting process.
• York: This city has moderate zoning codes and encourages downtown revitalization and adaptive reuse.

Highly Restrictive or Bureaucratic Areas

When it comes to navigating real estate regulations, these localities are known for their complex permitting processes, heavy regulatory oversight, deep politics, and strict, restrictive zoning codes. These factors generally make real estate investing more difficult in the following Pennsylvania municipalities:

• Haverford Township: The zoning process is highly bureaucratic and often faces active neighborhood opposition (NIMBY*), particularly to new commercial or residential development.
• Swarthmore Borough: Swarthmore Borough: Permitting and zoning changes are rare here because the local government maintains highly restrictive land-use policies designed to limit new development.
• Radnor Township: In addition to strict zoning, this town has a strong resident opposition to dense projects.
• Lower Merion Township: This town has one of the most complex design standards, zoning, and historic overlays in Pennsylvania, and the environment rarely supports new multifamily housing.

Regulatory Climate Factors to Watch

The real estate regulatory climate in Pennsylvania is influenced by several factors, which may include local zoning policies, land regulations, economic development priorities, permitting processes, and statewide laws. Such factors may determine how difficult or easy it is to renovate or develop property. Understanding these factors is crucial in helping both investors and developers navigate real estate regulations in each locality within the Keystone State.

The table below lists some regulatory climate factors to watch in Pennsylvania, and the municipalities where they're often found:

*NIMBYism - Not in My Backyard

Flipping in real estate involves purchasing properties with the intent to renovate, list, and resell them. It's generally a strategy adopted by real estate investors to sell homes quickly for a solid profit. In Pennsylvania, where the housing market is a mix of rural, urban, and suburban markets, flipping and reselling homes can be very profitable if done strategically using the strategies listed below:

One of the most important decisions to make when selling a home is setting a price that will appeal to potential buyers while still maximizing profit. Generally, in real estate, pricing strategies adopted can either make or break a deal. That's why working with a real estate agent or appraiser in Pennsylvania is highly recommended.

Licensed appraisers and local real estate agents understand the local real estate landscape and generally know how to tailor pricing to buyer financing and behavior. In addition, they understand how to set the right prices by using market trends to analyze pending, active, and sold comparable properties in the same locality within the last 90 days.

Sellers may be able to set the appropriate prices to attract serious buyers while still getting the best return on investment in Pennsylvania using one of the following pricing strategies:

To attract buyers and maximize value in Pennsylvania, sellers can adopt the relevant pricing strategy that works best in their locality, considering the prevailing market conditions at the time of the sale:

Certain factors significantly impact the trends of real estate markets and, in particular, local market dynamics (demand and supply) in Pennsylvania. These factors, which are listed below, vary by area and are largely responsible for shaping the Pennsylvania local property markets:

Economic Factors

Economic resilience and jobs and wage growth in places like Bethlehem, Carlisle, and Easton, are responsible for increased housing demand. On the other hand, buyer activity is slow in some parts of Philadelphia, Scranton, and Reading as a result of high-interest rates.

Demographic and Social Factors

In Pennsylvania counties like Delaware, Lancaster, and Bucks, the aging population has driven up demand for 55-plus communities and increased turnover in older single-family housing stock. Many seniors are currently relocating to smaller homes in these areas. As a result of urban revitalization, low-income earners are at risk of displacement in places like Harrisburg, Philadelphia, and Pittsburgh.

Regulatory and Legal Framework

Areas like Beaver, Montgomery, Chester, Westmoreland, and Bucks counties are experiencing rising home prices and constrained housing supply due to low permit activity and restrictive zoning.

Taxation and Fiscal Policy

In places like Erie, Lehigh Valley, and Luzerne County, accelerated residential and commercial real estate investments are being encouraged by tax incentives. Similarly, Allentown, Pittsburgh, and Philadelphia offer some form of partial tax relief that encourages developer interest and stimulates new construction.

Housing Policy and Government Programs

The Low-Income Housing Tax Credit program helps drive up the supply of income-restricted housing in Pennsylvania municipalities like Lancaster, Philadelphia, Chester, and Allentown. In addition, the Pennsylvania Housing Finance Agency generally offers low- to moderate-income families in York, Pittsburgh, and Scranton increased access to homeownership opportunities and helps stabilize neighborhoods through its rehab and financing programs.

Infrastructure and Development Trends

Local property markets are greatly influenced by certain infrastructure and development factors like energy and transportation. For instance, the ongoing Schuylkill Yards development is beginning to cause an increase in property values in Philadelphia.

Although inventory is improving in certain local markets, the Pennsylvania housing market continues to grapple with limited home supply in some urban areas. However, home prices are generally stabilizing, with more buyers moving to small towns and suburbs for space and affordability. Municipalities with the best return on investment for home sellers and developers include Pittsburgh, Harrisburg, Philadelphia, Scranton, and York.

While zoning laws in some Pennsylvania municipalities are flexible, they're highly restrictive in others. Areas with flexible zoning, such as Lancaster and Philadelphia, allow multifamily conversions and are more open to redevelopment. On the other hand, new development is limited in places like Bucks, Montgomery, and Chester counties due to more restrictive zoning.

In Pennsylvania, homes with 3-4 bedrooms and at least 2 bathrooms — particularly those with garages — remain the most in-demand across urban and suburban housing markets. Updated single-family homes are also in high demand because they're typically move-in ready and feature modern bathrooms and kitchens. Housing demand in affordable regions of Pennsylvania continues to drive steady housing market growth across the Keystone State.