Real Estate
This chapter explores real estate characteristics, including residential construction, housing sale prices, nonresidential construction, office market conditions, industrial market conditions, and retail market conditions.
Housing Construction
Housing construction in the county decreased after the 2008 recession, and despite a few high construction years (such as 2021 which saw 3,743 new units) has not fully rebounded.
Chester County had a housing construction boom in the early 2000s, with an annual average of 3,287 new units from 2000 to 2008. New construction fell after the housing market crash in 2008, with an average of 1,409 new units added from 2009 through 2020. Pent up demand after the 2020 COVID-19 pandemic contributed to strong apartment development (1,963 apartment units) in 2021, which led to an unusually high number of total new units in 2021 (3,743 new units). New unit construction remained higher in 2022 (2,537 new units) but decreased again in 2023 (1,637 units).
Chester County collects data through Assessment on built units; units are considered built once fully assessed, which occurs upon 50 percent occupancy. For more detailed housing data visit the 2022 Chester County Housing Cost Profile.
Figure 56 — New Housing Units
Figure 57 — Housing Type
| Year | Total | Single Family Detached | Single Family Attached | Apartments |
|---|---|---|---|---|
| 2023 | 1,637 (100%) | 601 (37%) | 625 (38%) | 411 (25%) |
Source: Chester County Assessment
Figure 58 — Multi-Family Construction (Percent of Total New Units)
Home Sales
2023 had the lowest number of home sales since 2011, driven largely by high mortgage rates.
Chester County home sales increased drastically in the early 2000s but began decreasing in 2004, hitting a low point during the Great Recession. Home sales continued to decrease through 2011, and had been mostly increasing since, with more than 7,000 sales each year. In 2023 home sales decreased by 27 percent from 2022 — to 5,439 sales.
Figure 59 — Annual Home Sales
Housing Values
Chester County's median housing value is the highest in the state, and in 2023 was the highest in over 30 years — even when accounting for inflation.
Chester County's inflation adjusted median housing sale price has increased by 49 percent since 2000. Median home sale prices have been steadily increasing since 1990, with only an exception of significant declines in 2009 after the 2008 recession. The median home sale price reached a peak in 2023 at $492,000.
Figure 60 — Annual Home Sales Median Price
Figure 61 — Change in Home Sales Median Price
Non-Residential Construction
The amount of square feet added in 2023 was the lowest in recent years.
Non-residential projects and square feet increased from 2016 through 2018, before dropping in 2019. The number of annual projects has been decreasing over the past four years. Commercial projects made up the majority of nonresidential square feet added between 2016-2023, with 3,355,287 square feet added, followed by institutional with 3,277,697 square feet.
Figure 62 — Total Non-Residential Projects
Figure 63 — Total Non-Residential Square Feet by Type
Figure 64 — Largest Non-Residential Construction Projects, 2023
| Building Square Feet | Project Name | Municipality | Type |
|---|---|---|---|
| 199,980 | Kaolin Re Holdings Corporation | Elk Township | Agricultural |
| 172,000 | GVSD New 5/6 Center | East Whiteland Township | Institutional |
| 66,000 | Devault Maintenance Facility - 3 proposed buildings (maintenance facility for PA Turnpike) and parking | Charlestown Township | Institutional |
| 48,758 | Hy-Tech Mushroom at 155 Valley Road | London Grove Township | Commercial |
| 48,000 | Mark Properties - Avondale - 4 proposed buildings (storage) and parking spaces for RV's, campers, and boats; only water is proposed, no sewer | London Grove Township | Commercial |
| 41,128 | Great Valley Community Organization | East Whiteland Township | Commercial |
| 34,230 | Kennett Library | Kennett Square Borough | Institutional |
| 27,056 | 1035 Saunders Lane | West Goshen Township | Industrial |
| 26,396 | Stanberry West Goshen, LLC | West Goshen Township | Commercial |
| 25,200 | Sycamore International | London Grove Township | Industrial |
| 23,895 | Patriot Self Storage, LLC | Lower Oxford Township | Commercial |
| 17,600 | S&P Conveyors | New Garden Township | Industrial |
| 15,520 | Eagle Compressor Station Modernization | West Vincent Township | Industrial |
| 14,558 | R&S Land Development - Old Schuylkill Road | East Coventry Township | Industrial |
| 14,000 | Kennett Gateway - Proposed: 53 Townhouses, 24 Apartments, commercial space, roads and parking | Kennett Township | Commercial |
| 13,390 | Brandywine Regional Airport | West Goshen Township | Commercial |
| 13,297 | Raj Real Estate LLC, 4 Tabas Lane - proposed 13,297 storage building with 4 retail units | West Whiteland Township | Commercial |
| 11,990 | Ducklings Early Learning Center | Caln Township | Institutional |
| 10,000 | DEVON PREPARATORY SCHOOL | Tredyffrin Township | Institutional |
Source: Chester County Non Residential Reports
Office Building Market
Chester County has a strong office market, although the vacancy rate of 10.3 percent is high.
The Philadelphia area office market is reasonably strong, with rents around $28.76 a square foot per year. Much of Chester County is part of the Philadelphia market, making it an attractive location for companies looking to expand or relocate.
Overall, Chester County has a large and competitive office market, with concentrations of offices in Chesterbrook, the Main Line, Great Valley/Malvern, the West Chester area, and Exton/Lionville. There are also scattered offices in developed parts of southern, western, and northern Chester County. These offices are typically owner-occupied. Like Montgomery County, Chester County has a relatively high vacancy rate. Some of this vacancy is due to the many offices built in the 1980s and 1990s that are now being retrofitted and modernized to address demand for new technology and collaborative work environments. The office vacancy rate has been increasing, at least partially due to changes caused by COVID-19 and people working from home
Neighboring Lancaster County to the West has a different, generally more agricultural and industrial economic market. This is reflected in the lower overall square footage, rents, and vacancy rates than both Chester County and the Philadelphia MSA.
Figure 65 — Office Building Characteristics, October 2022
Figure 66 — Office Building Vacancy Rates
Retail Building Market
Chester County's retail primarily serves local community needs.
The retail market in Southeastern PA is dominated by Montgomery County and Philadelphia, with the other counties in the region primarily having smaller malls and shopping centers that are focused on community needs. Chester County falls into a community-focused retail category, with retail centers scattered around major population hubs. Exton is the largest retail area for the county. Chester County is surrounded by major shopping areas to the north, east, and south, including King of Prussia, the Route 422 Corridor with its outlets and new centers, Concordville in Delaware County, and malls and shopping centers near Wilmington.
Figure 67 — Retail Building Characterisics, October 2022
Figure 68 — Retail Building Vacancy Rates
Industrial Building Market
Chester County has a varied industrial market, with the highest rents in the region.
The industrial market remains an important part of the Philadelphia region's commercial real estate sector. Over time, industrial uses have shifted from heavy industry to lighter industrial and manufacturing, although some heavy industry remains, such as steel production in South Coatesville and Coatesville. Much of Chester County’s modern industrial space is advanced manufacturing, such as medical products, pharmaceuticals, and other specialized manufacturing. Industrial uses are spread around the county, with major concentrations of newer buildings in corporate parks, including ones in Exton, West Chester, and Lionville. Around the country, mega-warehouses have been a major driver of new industrial construction, but, locally, these warehouses have mostly been locating in south-central PA, the Lehigh Valley, and southern New Jersey. Chester County has not had major new warehouse space delivered recently, which could be due to the county’s price of land and relative lack of interstate highway interchanges; however, construction has begun on new warehouses near the Route 100 and PA Turnpike interchange.
Figure 69 — Industrial Building Characteristics, October 2022
Figure 70 — Indistrial Building Vacancy Rates
