Affordability, Location and Lifestyle Remain Key Drivers for Homebuyers, But Most Fear a Middle-Class Pricing Squeeze, New WSFS Mortgage Regional Study Finds

Future uncertainty about their work, home and social environments shaping behaviors.

WILMINGTON, Del., March 03, 2021 (GLOBE NEWSWIRE) -- As the COVID-19 pandemic continues and people grapple with uncertain futures about their work, home and social environments, nearly six in 10 (59%) residents in the Greater Philadelphia and Delaware region feel the area is affordable, including more than half (55%) seeing the City of Philadelphia as a possibility for their next home purchase, a WSFS Mortgage Regional Study reveals.

The study, a regional tracking survey of Generation X (ages 39-55), older Millennials (ages 30-38), young Millennials (25-29) and Generation Z (18-24), examines the behavioral preferences of homeowners and others who plan to buy a home within the region in 2021.

Two-Way Migration
While respondents are interested in purchasing a home in Philadelphia, especially among Gen Z (60%) and young Millennials (56%), 45% of all respondents prefer to move to the Pennsylvania suburbs, including 69% of current suburban residents.

Current Delaware (77%) and New Jersey (72%) residents prefer to remain in their respective states, however 40% of Gen Zers in the region are interested in leaving the state they currently live in. And while only 25% of current Philadelphia residents plan to buy in the City, the overall interest among younger generations indicates Philadelphia is an option.

Across the region, the top reasons cited for wanting to buy a new home are better quality of life; more affordable; family nearby; and prefer more outdoor space.  

Inventory and Cash Concerns
Despite the prevailing feeling that the region is affordable, the shrinking inventory in some areas is cause for concern among all respondents, as nearly seven in 10 (69%) feel the middle class is being priced out of the market.

Overall, confidence in being able to afford to buy a new home in 2021 is down 10% compared to WSFS Mortgage’s 2020 findings, despite 64% believing the job market will improve this year.

“While we continue to see people look for new homes with more space or in desirable areas as interest rates remain low, there is also a crunch on inventory in the suburbs that is driving prices up,” says Jeffrey M. Ruben, President of WSFS Mortgage. “Some homebuyers, especially the middle class, are starting to feel squeezed out of some markets and are looking at Philadelphia as an option, especially among younger generations, while Delaware remains a strong choice due to affordability.”