The shooting happened shortly after 11 p.m. on the 5500 block of Greenway Avenue.
Police said the 44-year-old homeowner remained on the scene and is cooperating with police.
The 37-year-old man showed up at the hospital, police said. He was shot in his shoulder and both feet and was listed in critical condition.
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Police said the homeowner was being dropped off when he saw someone walking out of his home carrying bags.
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Police say the homeowner became suspicious. There was a confrontation, which escalated to the shootout, where each man fired shots at one other.
Police recovered 25 spent shell casings. A vehicle and two nearby homes were hit by bullets.
Police said the 37-year-old man has been arrested and a weapon was recovered.
The investigation is ongoing.
Around the same time, a 62-year-old man was shot and killed during a fight inside a Southwest Philadelphia home, according to police.
The deadly shooting on the 4800 block of Springfield Avenue marks the 99th homicide in Philadelphia so far this year.