Philadelphia saw accelerated population gains in 2024, led by suburbs

 By Brenda Nguyen CoStar Analytics

According to the latest data from the U.S. Census Bureau, the Philadelphia metropolitan area added an estimated 88,100 new residents between 2019 and 2024, marking one of the region's strongest five-year growth periods in decades. In 2024, the region experienced accelerated population growth, adding 49,520 residents—comprising 56% of the five-year population gain in a single year.

The recent population surge has bolstered apartment demand, with nearly 10,200 new units leased in 2024—the second-highest performing year, behind only 2021's post-pandemic boom. Moving van rental firm U-Haul released its Midyear Migration Trends analysis, indicating that the Philadelphia region primarily attracts residents from New York City, Central New Jersey, Washington D.C. and Wilmington, Delaware. People have increasingly sought Philadelphia's relative affordability while maintaining access to Northeast economic opportunities.

Suburban areas are the primary drivers behind the region's expansion, with Burlington County in New Jersey leading at a 1.1% growth rate in 2024, followed by Chester County, New Castle County and Gloucester County, each expanding by 1%.

This continues a five-year trend where Burlington, Chester, and Gloucester counties each averaged 1.3% annual growth. In contrast, Philadelphia County showed a slightly negative average growth rate of -0.1%.

This suburban population expansion has led to tight rental markets. Due to limited new supply and growing demand, suburban apartments have experienced higher annual rental increases than units located in the city's urban core.

Several factors drive suburban appeal, including excellent school districts, expanding corporate campuses along Route 202 and I-295 corridors, and the development of walkable town centers. Communities like Phoenixville, Media and Conshohocken have become particularly attractive to millennials, forming families who desire space and accessibility.

Despite recent robust growth, demographic experts anticipate Philadelphia's population to moderate in the near future. For a region historically dependent on international migration to offset domestic outflows, future immigration policy shifts could significantly impact Philadelphia's demographic trajectory. Oxford Economics forecasts the region's population growth to average just 0.2% annually through 2029.

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