PECO Drops Its Rate Hike Request. Here's What That Means for Homeowners and Buyers in the Philadelphia Suburbs

By Josh McKnight | The McKnight Team

PECO just blinked. Pennsylvania's largest utility company, which serves 1.7 million customers across southeastern Pennsylvania, had been seeking a 12.5% increase in residential electric rates and an 11.4% increase for residential natural gas customers. Under pressure from Governor Josh Shapiro and state legislators, PECO announced it is withdrawing both requests. The pullback is good news for homeowners across Bucks, Montgomery, Philadelphia, and Delaware counties.

Monthly Costs Matter More Than People Think

When buyers sit down to calculate what they can afford, they usually focus on the mortgage payment. That makes sense. But experienced buyers know the full picture includes property taxes, insurance, and utilities. A 12.5% jump in your electric bill and an 11.4% increase in gas would have added real dollars to that monthly number every single month.

For a household spending $200 a month on electricity and $150 on gas, those proposed increases meant roughly $46 more per month. That's $552 a year. It's not catastrophic, but it adds up fast over the life of a mortgage.

PECO says the withdrawal "reflects a deliberate effort to prioritize customer affordability." That's the official language. The plain truth is that state leaders pushed back hard and the utility backed down. For homeowners in the Philadelphia suburbs, it means the utility cost side of your monthly budget stays where it is.

What This Means for the Montgomery County Real Estate Market

Affordability is the defining story of the current market. According to Bright MLS data compiled for March 2026, the median sold price in Montgomery County reached $455,000, up 3.4% year over year. Bucks County came in at $510,000, a 14.6% jump. These are strong numbers, but they also mean buyers are stretching further to make transactions work.

Every time a carrying cost increases, it chips away at what a buyer can realistically spend on a home. That plays out in pre-approval amounts, in offer strategies, and in how many buyers can compete in a given price range. Holding utility costs flat is not a flashy market development, but it matters to the math.

Sellers benefit too. When buyers can afford more home, demand stays healthier. That's the environment that keeps days on market low and prices competitive.

What This Means for You

If you are in the middle of a home search right now, this is one less variable working against you. Keep your pre-approval current, work with your lender to understand your full monthly picture, and factor in utilities when you evaluate different properties. Older homes in the Philadelphia suburbs can carry higher utility costs than newer construction, so this is always worth asking about during a showing. If you are a current homeowner, the story is simpler. Your monthly cost just stayed the same instead of going up.

The McKnight Team works with buyers and sellers across Bucks, Montgomery, Philadelphia, and Delaware counties every day. If you want to know what the market looks like in your specific area, visit TheMcKnightTeam.com or reach out directly. Thinking about buying or selling in the Philadelphia suburbs? Let's talk.

Frequently Asked Questions About the Philadelphia Suburbs Real Estate Market

How do utility costs affect my ability to qualify for a mortgage?

Lenders look at your total debt-to-income ratio, which includes your estimated housing costs. While utilities are not always itemized in that calculation, lenders and buyers should account for them when determining a realistic monthly budget. Higher utility costs reduce the disposable income available to make a mortgage payment comfortably, especially in older homes with less insulation or aging HVAC systems.

Why do home prices vary so much between Montgomery County and Bucks County?

Each township and borough has its own mix of housing stock, school districts, and proximity to employment centers. In March 2026, Montgomery County's median sold price was $455,000 while Bucks County came in at $510,000, according to Bright MLS data. Within each county, prices can swing dramatically by zip code. A home in Lansdale will be priced very differently from a home in Lower Merion.

Is this a good time to buy a home in the Philadelphia suburbs?

Inventory remains tight across the region, which means well-priced homes are still moving quickly. The best time to buy is when you are financially ready and when the home fits your needs. Trying to time the market in this area has historically not worked in buyers' favor.

What should I budget for monthly utility costs in a suburban Philadelphia home?

It varies significantly by home age, size, and heating source. A well-insulated newer home of 2,000 square feet might run $150 to $250 per month combined. An older home of the same size could be double that in winter months. When touring homes, ask the listing agent for average utility costs. That information is often available and worth knowing.

Source: Daily Times; 4/17/2026