May 2026 Report
Philadelphia Metro
Philadelphia | May 2026
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area stands at 87 for this report period, up from 82 last month and below the 92 recorded during the same period one year ago. The five-point month-over-month gain reflects continued spring reactivation in buyer engagement, extending the recovery trajectory established since the prior dip and positioning the market in a stronger month-to-month recovery phase. The five-point year-over-year shortfall indicates the Philadelphia metro has not yet fully aligned with last May’s demand level, with affordability constraints and financing sensitivity continuing to moderate the pace of recovery even as seasonal patterns provide meaningful near-term support.
Demand by home type in Philadelphia shows a mixed but generally improving picture this period, with overall activity rising to an index of 87, up from 82 last month but still below 92 one year ago. Entry-level single-family homes held steady at 78, unchanged month-over-month and below 86 year ago, reflecting continued affordability constraints. Mid-range single-family homes improved to 80 from 70 last month but remain slightly below 82 year ago, while higher-end single-family homes also recorded 80, rising sharply from 62 last month but still below 88 year ago, signaling a strong rebound from last month’s low base. Entry-level condos remained stable at 117, unchanged month-over-month and slightly below 119 year ago, continuing to represent the strongest demand segment, while higher-end condos eased to 118 from 129 last month and are below 126 year ago, reflecting normalization after a stronger prior period. Townhomes and twin homes registered 93, down slightly from 94 last month and below 102 year ago, indicating mild softening in attached housing demand while remaining relatively balanced overall.
Monthly Statistics for May 2026
Home Demand
Index
Index
87
(Slow)
Home Demand Index
from prior month
from prior month
82
Home Demand Index
from prior year
from prior year
92
Index change
from prior month
from prior month
6.1%
Index change from
same time last year
same time last year
-5.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Home Demand Index | Historical Year-over-Year Comparison
Over the past 12 months, Philadelphia’s Home Demand Index traced its familiar seasonal arc, peaking in the upper 80s to low 90s during spring and early summer before declining sharply through fall and bottoming at 47 in December, followed by a recovery through winter that extended into spring. The current reading of 87 reflects a five-point increase from the prior period, suggesting renewed buyer engagement as the peak selling season begins to take hold. At 87, the index remains five points below the 92 recorded in the same period last year, indicating that while demand has improved from winter lows, it has not yet fully returned to last year’s peak spring level, with affordability and financing sensitivity continuing to shape the pace of recovery.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Home Demand Map
Regional demand across the Philadelphia metro continues to reflect its characteristic geographic structure, with activity holding near the metro-wide index of 87 and stronger performance concentrated in Pennsylvania suburban and select Delaware counties. New Castle, Bucks, Montgomery, Delaware, Kent, Chester, and Philadelphia counties all reflect steady to strong demand conditions above the metro average, supported by consistent buyer activity and relatively tighter inventory dynamics. In contrast, Burlington, Camden, Gloucester, and Mercer counties continue to represent the softest demand zones across the metro, reflecting limited market activity and weaker buyer engagement compared to Pennsylvania and Delaware submarkets.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Demand and Inventory by Home Type
Demand by home type in Philadelphia shows a mixed but generally improving picture this period, with overall activity rising to an index of 87, up from 82 last month but still below 92 one year ago. Entry-level single-family homes held steady at 78, unchanged month-over-month and below 86 year ago, reflecting continued affordability constraints. Mid-range single-family homes improved to 80 from 70 last month but remain slightly below 82 year ago, while higher-end single-family homes also recorded 80, rising sharply from 62 last month but still below 88 year ago, signaling a strong rebound from last month’s low base. Entry-level condos remained stable at 117, unchanged month-over-month and slightly below 119 year ago, continuing to represent the strongest demand segment, while higher-end condos eased to 118 from 129 last month and are below 126 year ago, reflecting normalization after a stronger prior period. Townhomes and twin homes registered 93, down slightly from 94 last month and below 102 year ago, indicating mild softening in attached housing demand while remaining relatively balanced overall.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Single Family Home Below $365k
The index for entry-level single-family homes in Philadelphia stands at 78 this report period, unchanged from 78 last month and below the 86 recorded one year ago. The flat month-over-month performance signals that demand in this tier has plateaued following the spring reactivation, with first-time and value-driven buyers maintaining consistent activity levels without further sequential acceleration, a pattern consistent with the metro’s more measured overall demand trajectory this period. The year-over-year gap indicates this segment has not yet recovered to prior-year pace, reflecting persistent affordability constraints that continue to weigh on entry-level single-family demand in a market where payment sensitivity remains a key limiting factor.
Monthly Statistics for Single Family Home Below $365k
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
78
Home Demand Index
from prior year
from prior year
86
Months of
inventory
inventory
2.4
Average daily inventory last month
1,197
Inventory sold
last month
last month
501
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Single Family Home $365k - $806k
Mid-range single-family homes in Philadelphia registered an index of 80 this report period, up from 70 last month and slightly below last year’s reading of 82. The ten-point month-over-month increase reflects meaningful spring momentum in the move-up segment, consistent with the broader seasonal reactivation driving sequential improvements across demand categories in the Philadelphia metro through the current spring cycle. With only a two-point gap versus the prior-year level, this segment is among the more fully recovered tiers in the market this period, suggesting that move-up buyers are re-engaging at a steadier pace, even as demand remains shaped by affordability considerations and cautious buyer behavior in higher-cost purchase decisions.
Monthly Statistics for Single Family Home $365k - $806k
Home Demand
Index
Index
80
(Slow)
Home Demand Index
from prior month
from prior month
70
Home Demand Index
from prior year
from prior year
82
Months of
Inventory
Inventory
2.1
Average daily inventory last month
2,774
Inventory sold
last month
last month
1,314
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Single Family Home Above $806k
The index for luxury single-family homes in Philadelphia stands at 80 this report period, up from 62 last month but below last year’s reading of 88. The eighteen-point month-over-month gain signals a strong spring reactivation among high-end buyers as the peak selling season arrives, consistent with the discretionary demand rebound typical of the Philadelphia luxury segment following the winter slowdown and the buildup of deferred purchasing activity. The year-over-year gap suggests luxury buyers in the Philadelphia metro continue to exhibit greater selectivity than at this point last year, reflecting a more cautious approach to discretionary purchases even as underlying demand conditions show clear improvement from the prior month.
Monthly Statistics for Single Family Home Above $806k
Home Demand
Index
Index
80
(Slow)
Home Demand Index
from prior month
from prior month
62
Home Demand Index
from prior year
from prior year
88
Months of
Inventory
Inventory
3.4
Average daily inventory last month
1,023
Inventory sold
last month
last month
300
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Condo Below $425k
Entry-level condo demand in Philadelphia stands at 117 this report period, unchanged from 117 last month and slightly below last year’s level of 119. The flat month-over-month performance indicates demand in this segment has stabilized at a strong absolute level following the spring reactivation, with buyer activity sustaining rather than accelerating further as the peak season matures, consistent with this tier reaching a near-term equilibrium where attached, lower-maintenance housing options continue to attract steady interest. At 117, this segment continues to meaningfully outperform the metro-wide index and all single-family tiers, underscoring the persistent appeal of entry-level condos as a primary affordability alternative in the Philadelphia metro, where structural price differences between attached and detached housing continue to channel a significant share of demand into this category.
Monthly Statistics for Condo Below $425k
Home Demand
Index
Index
117
(Moderate)
Home Demand Index
from prior month
from prior month
117
Home Demand Index
from prior year
from prior year
119
Months of
Inventory
Inventory
4.7
Average daily inventory last month
1,249
Inventory sold
last month
last month
266
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Condo Above $425k
Luxury condo demand in Philadelphia registered 118 this report period, down from 129 last month and slightly below last year’s level of 126. The eleven-point month-over-month decline reflects a moderation in high-end condo buyer activity after a strong prior period, consistent with seasonal adjustments as the peak spring wave absorbs available premium inventory and buyers in this discretionary tier exercise the selectivity characteristic of the luxury attached market. At 118, the segment remains slightly below the prior-year level, indicating a modest year-over-year softening that suggests normalization from elevated prior conditions rather than a structural decline in demand, as affluent buyers seeking premium urban inventory and lifestyle amenities in proximity to employment centers continue to sustain meaningful engagement with this segment.
Monthly Statistics for Condo Above $425k
Home Demand
Index
Index
118
(Moderate)
Home Demand Index
from prior month
from prior month
129
Home Demand Index
from prior year
from prior year
126
Months of
Inventory
Inventory
5.3
Average daily inventory last month
280
Inventory sold
last month
last month
53
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | May 2026
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The index for townhouses, rowhouses, and twin homes in Philadelphia stands at 93 this report period, down from 94 last month and below last year’s level of 102. The one-point month-over-month decline reflects a modest cooling in attached single-family demand following earlier gains, consistent with this segment settling into a more measured pace as market conditions stabilize. The nine-point year-over-year shortfall indicates this category is tracking below prior-year levels, though at 93 it remains a relatively resilient segment within the Philadelphia metro, continuing to attract buyers seeking a balance of space, accessibility, and relative affordability compared to detached single-family homes.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
93
(Steady)
Home Demand Index
from prior month
from prior month
94
Home Demand Index
from prior year
from prior year
102
Months of
Inventory
Inventory
3.6
Average daily inventory last month
6,554
Inventory sold
last month
last month
1,821
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties:
- Central Pennsylvania – Adams, PA; Berks, PA; Cumberland, PA; Dauphin, PA; Franklin, PA; Fulton, PA; Lancaster, PA; Lebanon, PA; Perry, PA; Schuylkill, PA; York, PA;
- Ocean County – Ocean, NJ;
- Philadelphia Metro – Bucks, PA; Burlington, NJ; Camden, NJ; Chester, PA; Delaware, PA; Gloucester, NJ; Kent, DE; Mercer, NJ; Montgomery, PA; New Castle, DE; Philadelphia, PA;
- Salem-Cumberland – Cumberland, NJ; Salem, NJ;
2. This report is for the May 2026 period with data collected from the previous month.
Released: May 11, 2026
Reference ID: 2422
Philadelphia | May 2026
Home Demand Map (Zip Codes)
Regional demand across the Philadelphia metro continues to reflect its characteristic geographic structure, with activity holding near the metro-wide index of 87 and stronger performance concentrated in Pennsylvania suburban and select Delaware counties. New Castle, Bucks, Montgomery, Delaware, Kent, Chester, and Philadelphia counties all reflect steady to strong demand conditions above the metro average, supported by consistent buyer activity and relatively tighter inventory dynamics. In contrast, Burlington, Camden, Gloucester, and Mercer counties continue to represent the softest demand zones across the metro, reflecting limited market activity and weaker buyer engagement compared to Pennsylvania and Delaware submarkets.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com