As we turn the page to 2025 and reflect on 2024, I thought it would be a good time to dive into some numbers from last year to figure out which markets performed best & worst when it comes to new construction sales.

As a developer, understanding what happened in the market over the past 12 months can help inform decisions as to where to look for future projects, whether you want to move forward with financing & building a project you currently own, or what to do with your existing inventory that is currently for sale on the market.

How do you identify the best sub markets to develop in?

There are obviously a number of factors that impact the performance of a submarket when it comes to new construction sales, so I had to narrow down a few KPIs that could help me to rank zip codes in order of strength.

The KPIs that I decided to focus on are as follows:

• New Construction Units Closed - Demand Indicator

• Total Showings Activity in 2024 - Demand Indicator

• New Construction Volume Closed - Market Size Indicator

• Average Price / Unit Sold - Pricing Indicator

• Average Price / Sqft - Pricing Indicator

Below are the results in order of most new construction units closed to least. I excluded any zip codes where there were less than 5 new construction sales for the year of 2024.

How do you use the statistics to rank the sub markets?

After pulling down the stats for each zip code, I then ranked each zip code from first to last in each category, and weighted the KPIs based on what I felt was most important to come up with a true ranking & essentially create my own scoring system.

This weighting framework prioritizes New Construction Units Sold (25%) and 2024 Showing Activity (25%) as key indicators because they most heavily indicate current buyer demand and buyer pool size. New Construction Volume Closed (25%) evaluates the overall market size in each submarket for New Construction.

Average Price Per Unit (10%) reflects overall potential revenue per sale, while Price Per Square Foot (10%) offers a standard measure of value, highlighting zip codes where buyers are willing to pay a premium for space across different home sizes.

The ranking results are below:

Top 5 New Construction Sub Markets of 2024

#1) 19146 - Graduate Hospital

19146 is comprised of mostly Graduate Hospital, along with the northern most parts of Point Breeze & Grays Ferry. It is not surprise to see this zip code ranked as the #1 performing submarket in 2024. Graduate hospital has a ton of buyer activity (#1 in showing activity & #2 in units closed), being the closest residential neighborhood to Rittenhouse Square. There is a healthy price point & price per sqft in this area, and a large market for new construction. The toughest part of developing in this area at this point is finding the right opportunities to build, but if you have upcoming projects in this neighborhood, you can rest assured that there is plenty of consistent demand.

• Units Closed: 83 (#2)

• Volume Closed: $72,818,181 (#1)

• Avg. Price Point: $877,327 (#5)

• Avg. Price / Sqft: $380 (#5)

• Showing Activity: 9841 (#1)

#2) 19125 - Fishtown

Fishtown has become one of the most popular neighborhoods in the city over the past 5 years, and has truly established a strong identity through the vibrant Frankford Avenue corridor, which continues to thrive with its dynamic food and nightlife scene. This zip code had more new construction units sell than any other zip code in the city, reflecting its high demand and desirability for buyers. With strong showing activity (#4), competitive pricing, and a significant volume of closed sales, Fishtown continues to be a prime area for new construction development, attracting a wide range of residents who value its walkability, culture, and community.

• Units Closed: 88 (#1)

• Volume Closed: $63,330,639 (#2)

• Avg. Price Point: $719,666 (#9)

• Avg. Price / Sqft: $317 (#9)

• Showing Activity: 6038 (#4)

#3) 19147 - Bella Vista / Queen Village

19147 is home to some of the most coveted neighborhoods in the city. In 2024, this zip code ranked third in new construction units sold, reflecting strong buyer interest in the area, which is no surprise, given that Bella Vista and Queen Village are two of Philadelphia’s most charming and historic neighborhoods. With a competitive average price per unit of $771,000 and robust showing activity at 9,324 (#2), the market remains attractive for developers who can find the right deal. Bella Vista and Queen Village continue to solidify their status as prime areas for new development, balancing urban convenience, historical charm, and a community atmosphere.

• Units Closed: 36 (#3)

• Volume Closed: $27,756,019 (#4)

• Avg. Price Point: $771,000 (#7)

• Avg. Price / Sqft: $376 (#6)

• Showing Activity: 9324 (#2)

#4) 19103 - Rittenhouse Square / Logan Square

Rittenhouse Square and Logan Square are two of Philadelphia's most prestigious neighborhoods, and in 2024, this zip code reflected the submarket’s luxury status with the highest average price per unit at $3,043,788 (#1) and the highest price per square foot at $1,139 (#1). Despite only having 18 new construction units closed (#10), the total volume closed of $54,788,195 ranked #3, highlighting the high price point. The numbers below are a bit skewed due to the large luxury condo buildings that are being sold in this area, so boutique developments shouldn’t expect to command the same type of price point or price / Sqft, but if you can find the right development opportunity in this area, it could be a home run.

• Units Closed: 18 (#10)

• Volume Closed: $54,788,195 (#3)

• Avg. Price Point: $3,043,788 (#1)

• Avg. Price / Sqft: $1,139 (#1)

• Showing Activity: 6078 (#3)

#5) 19123 - Northern Liberties

Northern Liberties comes in at #5 on the list, and though it isn’t in the top 5 in 3 / 5 KPI categories, it is still a strong and sought after neighborhood with solid buyer demand. Despite lagging behind it’s neighbor Fishtown in Volume Closed & Units Closed, Northern Liberties still commands a significantly higher Price / Sqft, showing it’s desirability to buyers. Northern Liberties is a well established neighborhood, and part of the reason why new construction sales are lower in this area could be due to the lack of new inventory being brought to the market.

• Units Closed: 36 (#3)

• Volume Closed: $26,504,610.00 (#5)

• Avg. Price Point: $736,239 (#8)

• Avg. Price / Sqft: $365 (#7)

• Showing Activity: 3794 (#8)

If you’re evaluating any new constructions project this year to purchase, build, or sell, we should talk. Getting involved early to make sure you have the right market insight and data to make your project a success is one of my favorite parts of selling new construction.

About The Author - Marco A. Di Gabriele

• Marco is a real estate agent, developer, and entrepreneur who specializes in New Construction Sales in the Greater Philadelphia Area.

• Marco has overseen the sales of over $100mil in New Construction sales over the past 5 years as the Director of New Construction & Development Sales on the Rarity Real Estate Team.

• Rarity Real Estate has sold $880M in Real Estate in the Greater Philadelphia Area since 2020, and is a Top 25 Ranked Team in Keller Williams International.