The Economic Development of Philadelphia in the Last 7Years and Post-COVID Measure to Grow Business
- TGFLIP Marketing
- Sep 30, 2020
- 6 min read
Updated: Jun 7, 2021
TGFLIP MARKETING AGENCY
September 30th 2020
Contents:
Introduction.
Philadelphia in the last 7 years.
Real estate market of Philadelphia.
The Impact of COVID-19.
How to tackle COVID-19 and double your business?
Why Digital Marketing?
How to start or do Digital Marketing?
Endnotes.
1. Introduction:
"All businesses start as small businesses, and that's why we're fighting to make sure City Hall focuses on a pro-growth, jobs agenda that protects neighborhood and small business owners."
These encouraging words are of Keith Baldwin. He is a company representative in the Chamber of Commerce of Greater Philadelphia. He along with the Chamber is standing for the new "PHL Neighborhood Growth Project (NGP)".
Small and Medium-sized businesses play a significant part in the US economy in the form of employers, taxpayers, developers, area institutions, wealth-builders, and suppliers in goods and services. That's the reason when businesses grow, they result in the prosperity of all the areas.
2. Philadelphia in the Last 7 years:
Philadelphia city as a whole has strengthened and increased entrepreneurship through its development. The graph below demonstrates details about self-employment. In 2017, 5.6% of Philadelphians aged 16 and older were self-employed.
Although, these numbers are less than in other big cities. But it is at the same point a signal of willingness and entrepreneurial spirit of Philadelphians. (1)
In 2017, about 3% of workers at Philadelphia businesses, which are approximately 20,000 individuals, were employed at "new" companies of any size established in the previous year. About 8%, which is likely to 47,000 individuals, were hired at "young" businesses that were established between 2012 and 2015. (2)
These facts indicate the degree of new companies founded per year and how many people get employed because of it. Young businesses that produce to be small or mid-sized commonly generate a majority of jobs at a time.
3. Real Estate Market Of Philadelphia:
Any US housing market has demographic aspects as one of the most crucial elements in distinguishing it. With a population of more than 1.58 million people, Philly is the 6th most populous US real estate market, after New York, Los Angeles, Chicago, Houston, and Phoenix.
Following are some figures of 2019
Median Property Price: $321,200
Real Estate Listings: 2,650
Days on Market: 87
Price to Rent Ratio: 19
Traditional Rental Income: $1,440
Traditional Cap Rate: 2.5%
Airbnb Rental Income: $2,200
Airbnb Occupancy Rate: 52.4%
Airbnb Cap Rate: 4.1%
The most significant trends that originate from this Philadelphia real estate market's analysis are the affordable prices of Philadelphia homes for sale, the reasonable price to rent ratio, the decent Airbnb occupancy rate, and the high rate of return for both traditional Philadelphia rental properties and Airbnb Philadelphia investment properties.
As Philadelphia is one of the most notable historical sites in the US, it attracts over 45 million visitors yearly. These visitors involve both leisure tourists as well as business travelers, from the US and abroad. Due to this factor, Philadelphia's housing market is one of the most visited one in the entire US. And also formulates it as one of the top locations for the Airbnb rental business.
Philadelphia's real estate market is constantly evolving day by day from the last 5 to 7 years. One of the factors for this continuous improvement is the availability of diversity in its market. Both long term rentals ( Eastwick, Fairhill, Millcreek) as well as short term rentals (West Parkside, Dunlap, Southwest Schuylkill) are available at affordable and reasonable prices. Another factor is high return on investment. Investors invest in rental properties (both traditional and Airbnb) to make money in real estate and no doubt Philadelphia's market offers a great deal to it.
In north Philadelphia, a recent property inspection performed by the city illustrated that the central market value of single-family buildings increased by nearly 10% in 2019, and is predicted to rise in the years to come. In some neighborhoods, like Northern Liberties, for instance, this number is going to be closer to 20%, or even 30%.
This small info about the neighborhood can provide you great insight. On average, homes in Schuylkill sell after just 70 days on the market.
Philadelphia housing market 2020 is proceeding to shape up to resume the trend of the last few years as one of the hottest markets in the nation. Let's put a glance at the price tendencies documented by Zillow covering the last few years. Philadelphia has a continued steady house price for a brief interval between 2013 to 2014. Since 2015, the median home price in Philadelphia has been appreciated by roughly 41.2%, from 133,000 to $187,772.
Last year, it was the fifth consecutive year of home price growth. The median home value in Philadelphia (on Zillow) is $187,772, up by 5.4% from the past year. As of Zillow's numbers and figures, Philadelphia is a burning hot market. Though, the latest Philadelphia real estate market predictions illustrate a little cooling-off. The home prices are still indicated to remain flat or may decrease by just 1.1% in the next twelve months. This is possibly because of the short term effect of the COVID-19 on real estate sales in the Philadelphia area.
4. The Impact Of COVID-19:
The probable economic and social consequences of COVID-19 on Philadelphia are proceeding to take shape. Locally, some regions are hit harder than others. Housing and food services, arts, entertainment and sport sector, and commercial trade are most likely to be the hardest hit ones. This is due to the necessary measures like social distancing.
According to CBS, the city says, the pandemic has already resulted in more than $4 billion loss on economic grounds from March through July.
Following is a graph indicating the great economic stress period of 2007 to 2009. You can observe the employment in the city's small and mid-sized businesses fall sooner and sharply during the recess than Philadelphia's large businesses. The smaller ones also proceed to rehire sooner, although in lower numbers than large did and that's the reason they step again. (3)
5. How to Tackle COVID and Double Your Business?
The important thing is COVID is not the end, but the beginning of a new era. As Henry Ford once said:
"Failure is simply the opportunity to begin again, this time more intelligently."
One more example in this regard is the struggle of the Eagles against all odds and at last against the Patriots. It was clearly a very hard game. On one side it was 5 times champion Patriots and Tom Brandy setting against the Eagles. While on the other side it was backup Nick Foles, who two summers ago examined moving on from pro-football leading the Eagles. It was the highest-scoring title game since 1995 and hence remarked as a great struggle in the history of sports as well as humanity.
But now the question arose about how to tackle the effect of COVID-19 on your business with little or no money in the pocket?
So, here it all begins. You have heard about marketing and mostly knows the pros and cons of it. But have you ever thought of Digital Marketing?
If no, then trust me, my friend, you are lagging behind your era's business!
Here is the proof. Small and Medium businesses using digital marketing techniques can have, not 2 times but 3.3 times better chances of revenue as well as growth.
Google's head of SME KEVIN O'KANE describes digital marketing as:
"Rocket full of growth for the small and medium enterprise."
6. Why Digital Marketing?
One of the reasons, because of which digital marketing is holding lead over old traditional marketing is the ability of digital marketing tools to target the real audience in no time.
Engagement is your customer's demand when he or she is interacting with your brand. And how you handle those engagements determines the extent and future of your business. Online Marketing no doubt doubles the result of engagements by a small effort.
One more plus point of Digital Marketing is, it targets every possible client that uses the internet. Clearly, the internet is the most productive tool for business nowadays. Mobile devices have become a central part of individual lives. Almost 91% of American adults always have their devices within reachable distance. From this data, you can predict the reach of your marketing.
7. How to Start or do Digital Marketing?
Yeah, I know you are worrying how to do it? That's the reason we are here. We under the banner of "TGflip Marketing" provide entire consultation, guidance, and digital marketing services.
So, don't waste your time my friend. Because in this cyber age every second cost. If you want any consultation or suggestions about Digital Marketing feel free to contact us. And let us transform your business into something futuristic.
8. End Note:
C. Christnacht, A. Smith, and R. Chenevert, “Measuring Entrepreneurship in the American Community Survey: A Demographic and Occupational Profile of Self-Employed Workers” (working paper, U.S. Census Bureau, Social, Economic, and Housing Statistics Division, 2018), https://www.census.gov/content/dam/Census/library/working-papers/2018/demo/SEHSD-WP2018-28.pdf. See also R. Fairlie, S. Desai, and A.J. Herrmann, “2017 National Report on Early-Stage Entrepreneurship” (Ewing Marion Kauffman Foundation, 2019), https://indicators.kauffman.org/wp-content/uploads/sites/2/2019/02/2017-National-Report-on-Early-Stage-Entrepreneurship-February-20191.pdf. And Pew trust.
U.S. Census Bureau, Longitudinal Employer-Household Dynamics (LEHD), Quarterly Workforce Indicators, accessed Jan. 8, 2019, https://lehd.ces.census.gov/data/#qwi. And Pew trust.
National Establishment Time-Series (NETS), 2014 edition, analysis by Amelia Hoover Green and Richardson Dilworth, Drexel University, 2019.
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