On the surface, Philadelphia and New York appear to have a lot in common. Both are large urban centers on the East Coast. Both are the preeminent economic engine for their respective state. And both cities played a crucial role in our nation’s founding. Philadelphia was the de facto capital during much of the Revolutionary War and hosted the signing of the Declaration of Independence, while New York was a strategic port and vital to keeping the war effort going.

While some other similarities exist — there’s no love lost for the Dallas Cowboys in either city — the comparisons end there. That being the case, it proves daunting gearing up for a relocation to a large, unfamiliar city.  

But while the culture and lifestyle may be different, there’s a lot to look forward to when making the transition from New York to Philadelphia. And you might find that in many respects, Philly is a more dynamic and less stressful place to call home.

With that in mind, let’s examine three things to know when moving from New York to Philadelphia.

A more agreeable cost of living and lifestyle

The most significant difference between the two largest cities of the East Coast is the disparity in the cost of living.

As you might expect, New York is one of the priciest cities in the nation to call home. Everything is more expensive there, especially if you live and work in Manhattan. Even the historically more affordable areas such as Brooklyn are pricing people out due to skyrocketing demand. From dinners with friends to public transportation, anything you can think of will cost more in New York.

Ninety minutes to the south, it’s a very different story. Though it’s the sixth-largest city in the U.S. and possesses the eighth largest metro area, Philadelphia is a considerably less expensive place to call home. Based on data from NerdWallet, living in Philadelphia is 57% cheaper than taking up residence in New York. 

Much of that disparity stems from housing. The median home cost in New York’s Manhattan borough is $2.2 million. In Philadelphia, the median price is considerably lower at $419,186 – a difference of 80%. If you plan to rent first before buying, expect a pleasant surprise there too. The median two-bedroom rent in Manhattan is $5,102. In Philadelphia, it’s a far more manageable $1,476. It also doesn’t hurt that Philly’s homes are, on average, larger than those in New York.

Every other necessity stays relatively close, but the disparity does add up. Health care costs are 6% lower in Philadelphia. Food and groceries run 17% lower. Transportation and utilities are 10% and 28% higher in New York, respectively.

There is a disparity in salary that is important to consider. A $150,000 salary in New York is equivalent to earning $65,077 in Philadelphia, and the cost of living is much more manageable in Philly. As for taxes, New York’s state income tax will take a 6% share from your earnings. In Pennsylvania, it’s 3.07%.

Sure, Philadelphia doesn’t possess the same demand that New York does — but then again, very few cities do. But if you’re relocating to Philadelphia, you can acquire a luxury home in a highly desirable neighborhood for a fraction of the cost.

Philadelphia has its own impressive roster of neighborhoods

New York is famous for many things, and one of its most touted advantages is the number and variety of neighborhoods. Particularly in Manhattan (though Brooklyn can claim its fair share), individual communities are equally as famous as the city itself — Chelsea, Midtown, Tribeca, the Upper East, and West Sides, to name but a few.

But New York does not have the market cornered on great neighborhoods. Philadelphia ranks at the top of the list when it comes to U.S. cities with great neighborhoods. In fact, the variety of housing and uniqueness of each community is very much on par with New York.

Consider for a moment:

The fine dining, expansive parks, green spaces, and museums of the Art Museum District — Fairmount. Specific highlights include Boathouse Row, the 2,000 acre Fairmount Park which includes public art displays and an arboretum, The Barnes Foundation, the Franklin Institute, the Rodin Museum, and the Philadelphia Museum of Art, home of the celebrated Rocky Steps.

The extreme walkability and convenience of Center City. It’s a short trek to downtown, an outstanding restaurant and nightlife scene, and some of Philadelphia’s biggest employers. History is close by as well, with Independence Hall, the Liberty Bell, Love Park, and Reading Terminal all within arms reach from anywhere in the neighborhood.

A former manufacturing hub turned dynamic arts and culture district, the Northern Liberties neighborhood is increasingly popular. A massive draw for artists, young professionals, and really anybody that appreciates Philly’s cultural vibrancy, the area boasts what is arguably the city’s best collection of hip boutiques and ultra-cool restaurants and bars.

The historical streets and buildings and homes of the waterfront enclave of Old City. Set in the shadow of the Benjamin Franklin Bridge, Old City features a vibrant waterfront with outstanding shopping, dining, and entertainment and easy walkability to some of Philadelphia’s most treasured sites, including the Betsy Ross House, Independence Hall, the Liberty Bell, the National Constitution Center, and Penn’s Landing.

The lush confines of Rittenhouse Square sit near a handful (13 to be exact) of Philadelphia’s most opulent and well-regarded apartment and condo buildings. Central to many of Philadelphia’s most desirable commercial and residential spaces, you can walk from Rittenhouse Square to the Center City Business District, Drexel University, the University of Pennsylvania, Love Park, and a bevy of outstanding restaurants.

The quiet, urban retreat of Society Hill and its solace and seclusion from the bustling cityscape that sits just beyond its borders. You’re still close to the best Philly has to offer, just without the hustle and bustle. Fine dining, quaint parks including Spruce Street Harbor Park, and the fun and vibrant Delaware River waterfront.

The close-knit row houses and authentic neighborhood vibes of South Philadelphia and its diversity of food, drink, and nightlife. Italian, Korean, and Vietnamese flavors converge in South Philadelphia, as does the debate for best Philly cheesesteak. However, the real prize is the great family-friendly neighborhoods that await, including Bella Vista, Passyunk Square, and Queen Village.

New York may get all the publicity, but Philly’s neighborhoods offer some of the country’s best big-city experiences.

Getting around won’t be an issue

Transportation is a primary concern for individuals and families when relocation from one big metro area to another. How long does it take to get anywhere in the city? What are the commuting obstacles? Is mass transportation a blessing or a burden?

Though it has its issues, New York’s subway system is one of the most efficient and revered in the world. But thanks to New York’s 303 square miles of sprawl and massive system of trains, it can feel like it takes forever to travel from point A to point B.

Philadelphia has no such issues. Certainly, if you opt for Philly’s outer suburbs, you can anticipate a longish commute by car or on the Southeastern Pennsylvania Transportation Authority (SEPTA) regional rail system, where the stops are simply laid out and easy to follow. But if you choose to live within or near the Center City Business District, you’re in for one of the best big city commutes in the country.

Thanks in large part to the city of Philadelphia’s relatively small footprint – at 134.7 square miles of actual land, Philadelphia is one of the smallest major cities in the U.S. – 71% of workers within the city’s major neighborhoods can commute to work without a car. 39% living in or around Center City can walk to work. 

Of course, those numbers represent commuting before the pandemic. With working from home more prevalent, Philadelphia actually has an advantage in a post-pandemic world. 

For comparison, New York’s walkability only extends as far as a neighborhood’s boundaries. Philadelphia allows you to crisscross neighborhoods and landmarks and back again with relative ease.

Cheaper housing, homes that are larger than their NYC counterparts, and the option not to use public transportation mean greater comfort and few limitations regardless of your current working situation.

If your career or family situation (or both) is flexible enough, Philadelphia is an excellent landing spot regardless of where you’re relocating from. Especially for those seeking a vibrant city with fantastic eats, an abundance of culture and history, and plenty more to see and do.

Ready to explore the best of Philadelphia real estate? Whether you’re seeking the quiet confines of Society Hill, the vibrancy of South Philly, or the history and culture of Fairmount or Old City, contact Powerhouse Real Estate today to begin your relocation journey. 

Allow the Powerhouse Team’s experience and expertise to be your guide to the Philadelphia luxury real estate market.