Overview
Pennsylvania offers two major metros with distinct personalities: Philadelphia with its history and urban renewal, and Pittsburgh with its remarkable transformation from steel city to education and healthcare hub. The state provides diverse options from urban to rural at generally affordable prices.
Pennsylvania Real Estate Market
Philadelphia offers urban living at a fraction of New York or Boston prices, with diverse neighborhoods from Center City to revitalizing areas like Fishtown and Graduate Hospital. Pittsburgh has become a model for post-industrial revival, with strong healthcare and education sectors. Central Pennsylvania offers small-town living at low prices.
Property Taxes in Pennsylvania
Pennsylvania property taxes are above average and vary significantly by school district.
Average effective rate: 1.58%
Annual tax on median home: ~$4,345
Homestead exclusion: Available in some municipalities
First-Time Buyer Programs
PHFA Programs: Pennsylvania Housing Finance Agency offers:
- HFA Preferred - Below-market rates
- Keystone Advantage Assistance - Up to 4% of loan
- K-FIT - Down payment assistance
- Mortgage Credit Certificate
Closing Costs in Pennsylvania
Pennsylvania closing costs are high, typically 3-5% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: 1% state + 1% local (typically split)
- Recording fees: County-dependent
- Philadelphia has additional 3.1% city transfer tax
Frequently Asked Questions
Philadelphia offers strong rental demand, diverse neighborhoods, and prices well below other Northeast metros. The city has seen significant revitalization while maintaining affordability. High transfer taxes and property taxes are considerations.
Pittsburgh has successfully transitioned from steel to healthcare and education, anchored by UPMC and CMU/Pitt. The city offers excellent quality of life and affordability, attracting young professionals and retirees alike.
PA property taxes vary dramatically by school district, sometimes by thousands of dollars for similar homes. Research specific district tax rates carefully before buying.