Developers Rush to Build in Final Days of Philly's Tax Abatement

Neighborhoods that have been stubbornly resistant to investment for decades are suddenly the scene of waves of permitting activity as the city of Philadelphia prepares to tighten its tax abatement program.

2 minute read

August 12, 2020, 5:00 AM PDT

By James Brasuell @CasualBrasuell


Pennsylvania

SnapASkyline / Shutterstock

Inga Saffron reports on a sudden glut of development proposals in Philadelphia. "Across the city, developers are scrambling to put together housing proposals before Philadelphia’s lucrative 10-year property tax abatement expires Dec. 31 and is replaced by a less generous incentive. The revised version cuts the value of the tax holiday in half."

"So many housing proposals were submitted to the city this month that the design review board had to schedule a second meeting to accommodate everyone," according to Saffron. The potential effects of this sudden rush to develop would eventually manifest all over the city. "There are plans for glass skyscrapers in Center City, a full-block apartment building in Brewerytown, even a mid-rise in the Northeast neighborhood of Tacony," according to Saffron.

Then there is the hopscotch of vacant properties along Delaware Avenue in Northern Liberties, which, according to Saffron, has resisted the development of every previous building boom and planning effort in recent decades, only suddenly to be full of project proposals. 

But now, in the middle of a historic pandemic, with massive numbers of people unemployed and the city’s economic fortunes uncertain, developers seem to have decided that this is a perfect time to build on the Delaware. This month alone, four companies will present their waterfront visions to Philadelphia’s Civic Design Review board. Should these projects get built, more than 1,500 new apartments would rise in the empty zone between Spring Garden Street and the Fillmore complex on Frankford Avenue. A real neighborhood could finally emerge on the Delaware.

According to additional details and data shared by Saffron on the articles, the number of household units proposed in the August rush will equal the number of units proposed in all of 2019. Whether all of these units get built is doubtful, but many of them certainly will be built. And, according to Saffron, all of this development interest, fleeting as it might be, is a sign that many developers with money to spend are bullish on the future of Philadelphia. That's a lesson for other cities wrestling with the media narrative about the demise of urban lifestyles as a consequence of the coronavirus pandemic.

A similar glut of development interest changed the New York City landscape when the 421-a abatement expired in January 2016

Monday, August 10, 2020 in Philadelphia Inquirer

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Use Code 25for25 at checkout for 25% off an annual plan!

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

3 hours ago - Diana Ionescu

Front of Walmart store with sign.

Walmart Announces Nationwide EV Charging Network

The company plans to install electric car chargers at most of its stores by 2030.

May 7, 2025 - Inc.

Aerial view of Chicago with river in foreground.

Chicago Approves Green Affordable Housing Plan

The Mayor’s plan calls for creating a nonprofit housing corporation tasked with building affordable housing that meets Green Building standards.

May 8, 2025 - CBS News Chicago

Close-up on e-scooters parked in painted designated parking area on city street.

E-Scooter Parking: A Guide

How smart planning — and ample designated parking — can end conflicts over shared scooters.

15 minutes ago - Streetsblog USA

Aerial view of Bozeman, Montana with mountains in background.

‘It’s Been 50 years’: Public Transit Law Passes in Montana

Legislation would fix transportation district issue, allow for greater reach on city bus routes.

1 hour ago - Daily Montanan

Illustration of nighttime city with white lines connecting nodes to illustrate technology and connectivity

Top 10 Tech-Ready Cities

An index ranks U.S. cities based on their preparedness for the ‘smart city future.’

2 hours ago - Smart Cities Dive