Category: Residential Real Estate

The biggest jump in Philadelphia’s property assessments this year occurred in Kensington, a measure that means many homeowners in the long-struggling neighborhood are likely to see higher taxes amid a concerted effort by the city to clean up the area.

That is according to an Inquirer analysis of recently released property assessments of single-family homes, which found that, citywide, there was a 3% median change in valuations from the 2025 tax year, the last time there was a mass reassessment.

That increase is far more modest than the widespread jump in valuations that homeowners saw two years ago, which captured multiple years of real estate growth and the volatile post-pandemic market.

What remains the same: who will be most affected.

The Inquirer’s analysis of this year’s property assessment data shows that low-income neighborhoods near gentrifying areas saw the sharpest jumps in valuations compared with the rest of the city.

The four areas that saw the largest percentage increases in median assessments — Kensington, Mantua, Grays Ferry, and Kingsessing — all border more gentrified neighborhoods like Fishtown, University City, and Point Breeze. The results of the analysis are a further sign that market pressures in higher-income areas are pushing into pockets of the city that have long been primarily home to Black and brown working-class residents.

Of the eight neighborhoods that saw the largest increases between the 2025 and 2027 tax years, five have median annual household incomes around $40,000 or less, according to an analysis of U.S. Census data. The federal poverty level is $33,000 for a family of four.

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In a statement, officials with Mayor Cherelle L. Parker’s administration noted that many homeowners in those five neighborhoods are benefiting from a popular city tax break. The city said that the median 2027 value in those five neighborhoods is $123,600, so for many homeowners in those areas, the median taxable assessed value is just $23,600.

That is because of the homestead exemption, a tax break for homeowners who live in their house as their primary residence that exempts the first $100,000 in home value from property taxes. Homeowners must sign up to be included in the free program.

At least 60% of homeowners in those neighborhoods have signed up for property tax relief programs, according to the city.

James Aros Jr., the chief assessor of the Philadelphia Office of Property Assessment, and Revenue Commissioner Kathleen McColgan said enrollment rates in property tax relief, including the homestead exemption and multiple tax freeze programs, are “encouraging.”

They said the city will “build on this progress through extensive targeted outreach, community partnerships, and efforts to make enrollment as simple and accessible as possible.”

The current property tax rate is 1.3998% of assessed value, which has not changed for nearly a decade. The revenue is split between the city and the Philadelphia School District.

Rising home values in Kensington

Citywide, the steepest increase in valuations was in Kensington, where the median property value jumped 15.3%, from $115,700 in the 2025 tax year to $133,400 now. That median increase would translate to a roughly $250 annual property tax hike.

That comes after Parker’s administration in 2024 launched a multipronged effort to address the long-entrenched open-air drug market in Kensington, which is the epicenter of the city’s opioid crisis and a site of sprawling homelessness.

While the administration has increased law enforcement’s staffing in the neighborhood and scaled up programs for people who are in addiction, Kensington has also for years seen creeping gentrification from Fishtown to its southeast.

Some neighborhood leaders have watched with anxiety as luxury housing developers and out-of-town investors gobbled up properties in the neighborhood, fearing that poorer residents and middle-class homebuyers may be priced out.

City Councilmember Quetcy Lozada, a Democrat who represents the 7th Council District, which includes parts of Kensington, said she knew speculators from outside the area would want to make it “the next gentrified neighborhood” once the city changed its strategy to more aggressively clean up trash and improve public safety.

But Lozada said there are not enough programs specific to Kensington aimed at preventing displacement as a result of rising property values, especially as the city is investing millions of dollars a year to improve the neighborhood. She said her office is exploring additional tax relief measures.

“I’m going to do whatever I have to do to make sure that residents who have lived in that community can stay there, can raise their families there,” Lozada said. “We have witnessed what has happened on the southern end of the district, where there has been rapid gentrification.”

Lozada also said rising property values in Kensington are part of why she has been “so careful with projects presented to me” and has prioritized what she sees as equitable development in the neighborhood — at times to the chagrin of developers who think she has been too restrictive.

“I’m all about people making a return,” she said, “but you can’t continue to do it on the backs of poor people.”

Continuing change in pockets of West Philly

There were also significant property value increases in parts of West Philadelphia.

The median increase in Mantua, the neighborhood north of University City, was the second highest in the city, at 15%, according to The Inquirer’s analysis. The median increase was 12% in Kingsessing, the neighborhood south of University City that in 2025 saw the largest jump of any neighborhood in Philadelphia.

Councilmember Jamie Gauthier, a Democrat who represents West Philadelphia and has made preventing displacement a key initiative, said that there has long been racial bias in the city’s property assessments and that the city must “get serious” about protecting low-income homeowners by revamping its system.

“There has to be a higher level of urgency in making sure that the city doesn’t have a hand in pushing out all of these homeowners that make Philadelphia what it is,” Gauthier said. “It’s unconscionable for us to destabilize our neighborhoods and the longtime homeowners who live there because we didn’t take enough care to make sure that our process was fair and equitable.”

For too long, she said, city officials have said they intended to examine the property assessment practices and identify improvements. In 2024, Parker convened a task force to study the process.

Aros told Council in April that the task force’s report was “being finalized.” He said OPA would look to implement recommendations from the report, including conducting more regular reassessments and improving property-level data such as property condition.

The city is also planning to hire an outside consultant to examine its mass appraisal practices, according to city records. The analyst will be responsible for drafting a report by the end of this year.

Deputy creative director John Duchneskie contributed to this article.