Philadelphia’s Anchors: How Education and Healthcare Strengthen Our Local Economy, and Housing Market

When people think about what makes Philadelphia special, history and culture often come to mind. But another story runs quietly in the background, how education and healthcare anchor the region’s economy and shape its future.

The Power of “Eds and Meds”

Hospitals, universities, and research centers do more than provide services. They are the backbone of Philadelphia’s job market. Together, these institutions employ tens of thousands of people, from doctors and nurses to professors, administrators, and support staff.

• Education and healthcare represent about 1 in 5 jobs in the city.
• Across the Philadelphia metro region, they account for nearly 13% of all jobs, fueling over $33 billion in income every year.
• From 2024 to 2025 alone, the education and health services sector added more than 28,000 jobs, outpacing national growth.

That steady expansion makes them vital drivers of opportunity and stability across the region.

Anchors That Stay Put

Unlike industries that can move operations overseas or follow shifting demand, hospitals and universities are deeply rooted in their communities. They’re called anchor institutions because they don’t just provide jobs, they attract research funding, spur innovation, and create ripple effects for small businesses, housing, and local services.

Walk through University City or along North Broad Street, and you’ll see it: campuses, medical centers, and labs buzzing with activity. Those hubs of learning and care keep drawing talent, investment, and new residents.

Beyond the City: Bucks, Montgomery, Chester, and Delaware Counties

The influence of education and healthcare doesn’t stop at Philadelphia’s borders. Surrounding counties benefit directly from these anchors as well:

• Bucks County – Bucks is supported by institutions like St. Mary Medical Center in Langhorne and Jefferson Bucks Hospital in Langhorne, along with schools such as Bucks County Community College. Many healthcare and education professionals choose Bucks for its suburban neighborhoods, strong school systems, and easy access to Center City.
• Montgomery County – With anchors like Abington Hospital – Jefferson Health, Einstein Medical Center Montgomery, and Montgomery County Community College, the county combines education, healthcare, and suburban convenience. The result is one of the most desirable housing markets in the region, attracting both first-time buyers and families looking to settle long-term.
• Chester County – Chester benefits from a mix of healthcare and research institutions, including Chester County Hospital (Penn Medicine) in West Chester, Paoli Hospital (Main Line Health), and universities like West Chester University. The county’s ties to biotech and pharmaceuticals also attract professionals in related fields, fueling demand for both historic homes and new developments.
• Delaware County – Anchors here include Crozer-Chester Medical Center, Delaware County Memorial Hospital, and schools like Widener University in Chester and Swarthmore College. With close proximity to the city and its own strong educational and healthcare base, Delaware County continues to see steady housing demand from professionals and students alike.

These counties provide housing options for the professionals who power Philadelphia’s eds and meds industries. As demand for skilled workers grows, so does the demand for homes in these surrounding areas.

How This Impacts Real Estate and Homeownership

A strong job base isn’t just good for workers, it strengthens the housing market too. Steady employment in healthcare and education supports long-term demand for housing, whether it’s students renting apartments near campus, medical staff buying homes close to work, or researchers and professors settling into the suburbs.

For homeowners, this means greater confidence in property values over time. For buyers, it means entering a market supported by industries that continue to grow year after year. And for neighborhoods, it means sustained investment that builds vibrant communities.

At Innovative Mortgage Brokers, we don’t just follow the numbers, we know the neighborhoods. From Center City condos to family homes in Bucks, Montgomery, Chester, and Delaware Counties, we understand how local job markets, schools, and healthcare hubs shape housing demand. That insight helps us guide buyers and homeowners with financing options that fit both their goals and the communities they want to call home.

Takeaway

Philadelphia’s economy has many moving parts, but its anchors, education and healthcare, give it strength and direction. They keep people employed, attract new residents, and fuel innovation that benefits the entire region. From Center City to Bucks, Montgomery, Chester, and Delaware Counties, these institutions create a strong foundation for both the local economy and the housing market, making this an area with opportunity, stability, and long-term value.