PHILADELPHIA (KYW Newsradio) — The number of people moving into Philadelphia’s core continues to grow, according to a Center City District report released Monday.
Foot traffic in the district is still slightly less than it was before the COVID-19 pandemic, but the report shows the number of full-time residents has grown by 6% in the last three years. Unlike many parts of Philadelphia, more people are moving into Center City than are moving out.
Residential growth has been a crucial part of ongoing economic recovery from the pandemic in every sector, says Prema Gupta, who recently took over as CCD president.
“More residents means steady foot traffic, which attracts restaurants and retailers, increases economic activity and contributes to safety and security,” Gupta says.
“Where we see it very directly is with new retailers in Center City. We’ve heard national experts call Walnut Street one of the preeminent locations for digital-native brands which, frankly, cater to a younger, Millennial, Gen Z crowd.”
Gupta says it also helps with the return to work, since CCD has found that employees are far more likely to go into an office if it’s within two miles of their home, and Center City remains the largest job center.
“This report is really optimistic,” says Gupta. “We feel really good that this relationship between new inventory and population follow each other really closely.”
CCD’s economic development manager, Lauren Smith, says most of the new residents are coming from other parts of Pennsylvania, but 15% have come from New York City. The majority of Center City residents are 22 to 34 years old, and 80% have college degrees.
“We’re looking at affluent young professionals, many of them coming from universities nearby,” she said.
Philadelphia leads the nation in converting office space to residential, thanks in part to the 10-year tax abatement — though, Smith adds, candidates for the conversion are dwindling.
“There are very specific things that are needed for a residential building — like windows and elevator access — so identifying those buildings will be important for the future,” Smith said.
Center City added nearly 3,000 residential units last year, the highest number in the last five years, according to the report. Smith says there are 7,000 more in the pipeline, and she expects demand to keep up with the new supply.