Just the PeaksThis newsletter at a glance
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Parts of PA continue to shock homebuyers with their fantastically low home prices.
Learn more about the special perks and advantages of buying in this historical haven.
Friends of Everest, you can skip the security line!
This month, we’re taking a quick drive over the border to one of our elusive neighbors to the west—the great state of Pennsylvania.
For buyers who are currently priced out of the highly competitive (and expensive!) New York and New Jersey markets, the nearby Keystone State boasts some of the most promising real estate stats we’ve seen in a while. This is an interesting state—it’s vast and super diverse—so you really need to know what you’re doing before you invest in a PA property.
It’s certainly an active real estate market. In the month of March, Pennsylvania home sales surged 23.6% from the previous month. Even as inventory remains low and home prices continue to rise, market activity is increasing, and the overall median sale price in PA sits at an incredible $224,757.
That’s a number many of us haven’t seen in months—if not years!
So, Pennsylvania—what’s your secret? How are home prices so dramatically cheaper compared to your eastern neighbors? Is life that much different over in your landlocked state?
Here at Everest, we had to find out!
Pennsylvania: Land of real estate promise
Before we dig into the details, let’s talk about Pennsylvania’s reputation among its close neighbors: New York and New Jersey.
For many of us who grew up mere miles away, the thought of moving to—or even just owning in—Pennsylvania seems almost unfathomable! Due to long-held stereotypes, folks still regard PA as some distant black-sheep cousin. Perhaps they assume cities like Philadelphia or Pittsburgh lack the cosmopolitan charm of New York. Or that the interior of the state is filled with vast farmland. Oh, and their notoriously bad drivers (let’s not get into that!).
With all of these negative assumptions, it’s easy to forget that just over the border is a place known for its extensive contributions to U.S. history. Pennsylvania is definitely one of the most fascinating states in the U.S. Take Philadelphia, where the Declaration of Independence was signed in 1776, and home of the Liberty Bell, the quintessential symbol of American freedom. In many ways, Pennsylvania serves as the historical birthplace of our country.
In addition, you’ll find multicultural diversity, stunning architecture, exhilarating natural sights, and a variety of housing options for every budget. In fact, people in Western New Jersey have been hopping the PA border for decades in search of higher quality of life and lower cost of living.
From quaint Philly row houses and Harrisburg apartments to gorgeous colonial mansions and iconic Pennsylvania Dutch farmhouses, the PA real estate scene is truly inspiring!
As stated by Everest’s Chief Loan Officer and CEO Brooke Jacob, “Pennsylvania can be elusive and it’s still a pretty well-kept secret!”
Now that home prices are soaring everywhere else, there’s no better time to call this Northeastern gem home. So, what’s so special about the Second State?
Check out our comprehensive list of ‘the good and the bad’ below.
The Honest Pros & Cons of Buying & Living in Pennsylvania
The Pros
First, the good…
Affordability
As aforementioned, some of the real estate numbers coming out of Pennsylvania are staggering. If you’re looking for home sale prices that average far below the typical NY/NJ single-family, peruse listings in cities like Bethlehem, Pottsville, Reading, Lancaster, and York.
Pennsylvanians get more bang for their buck while also taking advantage of excellent schools and diverse amenities. Overall, the cost of living in PA is 4% lower than the national average, so it’s easier to achieve a comfortable middle-class lifestyle compared to nearby states.
Proximity to major cities
Talk about the perfect ‘in between’ location! Pennsylvania is positioned relatively close to huge metropolitan hubs like New York City, Washington, D.C., and Baltimore. People considering a move to PA don’t have to cut ties with their big city roots, as they’re within comfortable driving distance.
In fact, it’s not uncommon for people living in Pennsylvania to maintain jobs in New York City. Many work remotely and take a commuter train into Manhattan a couple of times a week.
Local charm
Philly may have some harder neighborhoods, but don’t forget the ‘other side’ of Pennsylvania including its many delightful suburban enclaves. Small towns in and around the city are filled with quaint shops, eclectic dining options, tree-lined streets, and other picturesque amenities.
“If you’re looking for a beautiful place to live, you will find gorgeous upscale communities tucked away just minutes from the action of downtown Philly,” says Brooke. “There are some really charming communities in PA. Check out Bala Cynwyd, Lower Merion, and Southampton!”
Naturally, these beautiful townships are also the most expensive; but you get more quality of life for your money compared to NY or NJ.
Investment opportunities
Beyond its affordable housing market, Pennsylvania is also investor-friendly.
“PA offers some of the most affordable investment opportunities,” Brooke explains. “For example, a newly renovated 3-bedroom, 3-bathroom rowhouse in Philly sells for around $185,000. At 80% financing, total monthly payment comes to around $1,000 and rental income at $1,700 per month. That’s a fabulous deal for small real estate investors! Of course, this is just a hypothetical scenario subject to various conditions including taxes, insurance, and the like.”
Natural landscape
For people who love the great outdoors, Pennsylvania has some seriously epic recreational activities spanning all four seasons including hiking, skiing, fishing, hunting, and beyond. There’s the Appalachian and Pocono mountains, the Delaware Water Gap, countless lakes and streams, 19 national parks—and most within an hour’s drive.
“Don’t forget the gorgeous farmland and rolling hills galore in and around Lancaster County,” notes Brooke. “This region of the state is also home to Amish communities who offer lovely farm and wood products, among other specialities exclusive to Pennsylvania.”
Rich history and culture
From Gettysburg to Independence Hall, Benjamin Franklin to Milton Hershey, just talking about Pennsylvania is like reading out of a history book! Families living in the eastern part of the state benefit from countless educational experiences for both adults and children.
“History began here! There are so many beautiful and iconic sites to see,” says Brooke. “Families can take a day trip to the Liberty Bell, The Philadelphia Museum of Art, The Philadelphia Zoo, Longwood Gardens, Valley Forge, Washington Crossing—the list goes on and on!”
Tax breaks for retirees
When their working days are over, many New Yorkers and New Jerseyans hop the first plane to Florida. But did you know that Pennsylvania is one of the most tax-friendly states for retirees?
In the Keystone State, both social security income and payments from retirement accounts like 401(k)s and IRAs are tax exempt. If you’re over the age of 60, pension income is also off limits. So if you’re not quite ready to leave family behind, living in Pennsylvania could be an affordable way to enjoy your golden years in the Northeast.
The Cons
…and now, the (sort-of) bad.
Crime concerns
Unfortunately, Philadelphia often lands near the top of “America’s most dangerous cities” lists. Not exactly the best distinction! But like any other state, crime risk is only relevant if you consider the specific region or neighborhood in which you choose to reside (and Pennsylvania is huge!).
Fun fact: Although some parts of Philly are fraught with crime, Pennsylvania actually ranked #39 on the list of states with the highest crime rates in 2024. Compared to New York (#19), that’s not too concerning after all!
Poverty and its effects
Poverty is a major contributor to the petty (and more serious) crime seen in Pennsylvania’s major cities. Residents who want to take advantage of the state’s all-around amazing benefits must also consider its downsides.
For instance, certain parts of Philadelphia have significant homeless populations, drug activity, and garbage on the streets. Also, if you like living in a clean, pristine environment, Pennsylvania ranks a dismal #6 on the “dirtiest states in America” list based on emissions, air pollution, landfill waste, etc. But if it makes you feel any better—New Jersey ranked #1!
High taxes
In addition to high state income tax, Pennsylvania is also home to the city with America’s second highest property tax rate: Philadelphia. Many people moving from New York and New Jersey usually find themselves in the City of Brotherly Love, so don’t overlook this potential burden.
Experts say taxes hit the hardest in Philly households earning over $100,000 with a typical rate of 20.9%. On a more positive note, the city and its suburbs also boast some of the best job opportunities in the state.
What’s the verdict on Pennsylvania?
Everest says: homebuyer paradise!
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