Pittsburgh is a thriving city located in western Pennsylvania with a population of over 300,000 people. The city has a rich history and culture, with a booming economy that attracts people from all over the world. One of the most significant aspects of Pittsburgh's growth is its real estate market. In this blog post, we will discuss the current state of the Pittsburgh housing market, including house prices, trends, and migration patterns.
Pittsburgh sits where the Allegheny and Monongahela Rivers meet and form the Ohio River. That location gave it access to the ocean and the interior, while nearby iron deposits fueled its growth.
Current Pittsburgh Housing Market Report 2023
As reported by Redfin, the Pittsburgh housing market is somewhat competitive, with homes receiving an average of 3 offers and selling in around 53 days. In October 2023, home prices in Pittsburgh witnessed a significant increase of 6.4% compared to the previous year, reaching a median price of $250,000.
This reflects a positive trend in the market, with 356 homes sold in October, up from 352 in the same period last year. On average, homes in Pittsburgh sell for about 3% below the list price and go pending in approximately 52 days. Hot homes, however, may sell for about 2% above the list price and go pending in around 35 days.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Pittsburgh is 97.7%, indicating a balanced market. In 2023, this ratio reflects an 80.0% to 110.0% range, suggesting reasonable pricing dynamics in the housing market.
Pittsburgh Migration & Relocation Trends
Understanding the influx and outflow of people is essential in gauging the city's attractiveness. About 0.55% of homebuyers nationwide considered moving to Pittsburgh from outside metros. New York, Washington, and Los Angeles were the top metros from which people sought to relocate to Pittsburgh. Conversely, Youngstown, Myrtle Beach, and Birmingham were the popular destinations for those leaving Pittsburgh.
Pittsburgh Housing Market Forecast 2023-2024
Pittsburgh has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. What are the Pittsburgh real estate market predictions for 2023 to 2024? Let us look at the price trends recorded by Zillow over the past few years.
The Pittsburgh housing market has seen steady growth, with the average home value reaching $224,211, reflecting a 3.3% increase over the past year. Homes in Pittsburgh typically go pending in a swift 10 days, indicating a robust demand. According to Zillow, as of October 31, 2023, the market boasts 1,895 homes for sale, with 684 new listings, showcasing a dynamic real estate landscape.
The median sale to list ratio as of September 30, 2023, stands at a strong 1.000, underlining the competitiveness of the market. The median sale price is $242,150, slightly below the median list price of $251,633. Notably, 36.0% of sales are above the list price, while 48.3% are below it, emphasizing the diverse range of property transactions in Pittsburgh.
Pittsburgh MSA Housing Market Forecast (2023-2024)
The Pittsburgh Metropolitan Statistical Area (MSA), encompassing various counties in Pennsylvania, is projected to experience a slight dip in the housing market. According to the forecast data, as of October 31, 2023, there is a modest increase of 0.1%, but subsequent months reveal a decline of -0.3% by January 31, 2024, and a more substantial decrease of -2.2% by October 31, 2024. This forecast suggests a potential cooling of the market, urging stakeholders to navigate with caution.
The Pittsburgh MSA spans across multiple counties in Pennsylvania, fostering a diverse and interconnected housing market. While specific county names are not provided in the provided data, it is common for MSAs to include counties such as Allegheny, Butler, Washington, and Westmoreland. These counties collectively contribute to the vibrancy and scale of the Pittsburgh housing market, influencing trends and developments within the broader region.
Current Trend in Home Prices
The Pittsburgh housing market currently exhibits a stable trend, with the average home value experiencing a modest 3.3% increase over the past year. While there is a forecasted decrease in the market, the extent of this decline remains relatively moderate, signaling more of a correction than a drastic drop in home prices.
Buyer's or Seller's Market?
The current state of the Pittsburgh housing market indicates a balanced environment for both buyers and sellers. The 1.000 median sale to list ratio as of September 30, 2023, suggests a fair equilibrium between listing prices and actual sale prices. Additionally, with 36.0% of sales over the list price and 48.3% under the list price, there is a diverse range of opportunities for both buyers and sellers, contributing to a competitive but balanced market.
Potential for a Housing Market Crash
Based on the provided data and the Pittsburgh MSA housing market forecast, there is no immediate indication of a housing market crash. The forecast shows a gradual decline rather than a sudden plummet in housing prices. However, it is essential to monitor market trends, economic factors, and external influences to make informed predictions. Market participants should exercise caution and adapt to the changing dynamics to navigate potential challenges effectively.
Pittsburgh Real Estate Investment Overview
Now that you know where Pittsburgh is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Is Pittsburgh a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in Pittsburgh is a good investment. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers.
If you are looking to make a profit, you don’t want to buy the most expensive property on the Pittsburgh real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Pittsburgh that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.
Let’s take a look at the number of positive things going on in the Pittsburgh real estate market which can help investors who are keen to buy an investment property in this city. Pittsburgh, Pennsylvania is home to around 300,000 people. However, the Pittsburgh real estate market is much larger than this. The entire metro area is home to over two million people. Pittsburgh ranked at the top of Nationwide’s 2015 Health of Housing Market Report. It is home to approximately 90 diverse and eclectic neighborhoods and many of them offer convenient access to downtown and urban amenities.
The overall stability of Pittsburgh’s economic outlook has contributed significantly to the gains seen in the real estate market. This can be seen in two distinct areas, employment rates, and median household income. Several neighborhoods in Pittsburgh are seeing an influx of growth that is spurring new construction and contributing to retail growth. Pittsburgh has also been recognized as one of only four metropolitan areas out of 200 studied by economists at Realtor.com.
What Makes Pittsburgh Real Estate Market Attractive For Investment? |
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It Is Landlord Friendly
The Pittsburgh real estate market can be considered landlord-friendly. There are rules regarding security deposits, and depending on the situation, you may have to pay rent on the security deposit. On the upside, there is no limit on late fees and they don’t have to be written into the rental agreement, though this is recommended. You don’t have to give notice before entering. The state, at least, doesn’t require a rental license to become a landlord. Pittsburgh has passed a rental registration regulation, but it is being challenged in the courts.
The Strong Local Economy Attracts Residents
The unemployment rate for Pittsburgh is around 5%. The unemployment rate for Pittsburgh parallels that of the state of Pennsylvania. Employment growth is growing broadly, with seven of the ten major industries seeing job gains. Notably, the unemployment rate for the Pittsburgh real estate market is somewhat better than that in Fayette County and Armstrong County. The Pittsburgh real estate market is seeing a surprising renaissance because it is reinventing itself as a high-tech hub.
The CBRE listed it as the third market in the U.S. for high-tech job growth. That same tech boom is radically altering the commercial real estate market. With many industries adding more jobs every month, which consists of manufacturing, leisure, technology, and health care, Pittsburgh’s economic prosperity will continue to foster a thriving housing market. Google, Apple Inc., Bosch, Facebook, Uber, Nokia, Autodesk, Amazon, Microsoft, and IBM are among 1,600 technology firms generating $20.7 billion in annual Pittsburgh payrolls.
Real Estate Investment In Pittsburgh Is Still Affordable
Real estate investment in Pittsburgh continues to offer an affordable opportunity for potential investors. With a market that boasts a diverse range of neighborhoods, stable pricing trends, and a balanced dynamic between buyers and sellers, Pittsburgh provides an attractive landscape for those seeking to enter the real estate investment arena. The city's relatively lower average home values and the potential for future growth, as indicated by forecasts, make it an appealing destination for investors looking to maximize their returns while entering a market that offers manageable entry points.
The Large Pittsburgh Rental Real Estate Market
Pittsburgh is a centuries-old city, so it is home to many colleges and universities. The area is home to 68 colleges and universities, including research and development leaders Carnegie Mellon University and the University of Pittsburgh. Each is home to several thousand students. Smaller schools like Vet Tech Institute and Dean Institute of Technology abound. The biggest is the University of Pittsburgh with almost 30,000 students, and it is growing. Pittsburgh State University is attracting so many students that the city approved a new mixed-use development near Fourth and Broadway Streets to cater to them.
As of November 2023, the rental market in Pittsburgh, PA is showing interesting trends. Here's a summary of the current state of the rental market:
Neighborhood Insights
Here's a glimpse of median rents for 1 bedroom apartments in key Pittsburgh neighborhoods:
- Downtown Pittsburgh: $1,500
- Central Northside: $1,499
- Crawford Roberts Hill: $1,550
- Squirrel Hill South: $1,250 (21% higher than city median)
2023 Average Rent Prices in Pittsburgh, PA
What is the 1 bedroom average rent in Pittsburgh, PA? As of November 17, 2023, the 1 bedroom apartment average rent in Pittsburgh, PA is $1,242. The cost of rent in Pittsburgh varies depending on several factors including but not limited to: the unit size, the count of bathrooms, and the location within Pittsburgh.
What is the 2 bedroom apartment average rent in Pittsburgh, PA? Based on our data, the 2 bedroom apartment average rent in Pittsburgh, PA is $1,475. The price of rent in Pittsburgh varies depending on several variables including but not limited to: the unit size, the count of bathrooms, and the location within Pittsburgh, PA.
What is the 3 bedroom apartment average rent in Pittsburgh, PA? In November 2023, the average rent price in Pittsburgh, PA for a 3 bedroom apartment is $1,695 per month. Rent prices in Pittsburgh vary based on multiple factors including but not limited to: the unit size, the count of bathrooms, and the location within Pittsburgh, PA.
Another reason to invest in Pittsburgh over Philadelphia is that the latter has a history of being too aggressive in seizing property under asset forfeiture and then reselling it. While that presented a few deals to potential buyers, no one wants to worry about losing their home or rental property because a kid living there dealt drugs. The expensive deal Philadelphia had to agree to in order to compensate those whose homes were wrongfully taken will only add to the population’s tax bill in the future.
Maybe you have done a bit of real estate investing in Pittsburgh, PA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Pittsburgh is seeing an incredible renaissance, unlike many other Rust Belt cities. It is attracting new residents, redeveloping its downtown.
And it is an excellent place to invest in real estate while it is still in the early stages of its rebound. A good cash flow from Pittsburgh rental property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Pittsburgh real estate investment opportunity would be key to your success.
Apart from the Pittsburgh real estate market, you can also invest in Columbus, Ohio. The Columbus Ohio real estate market is a bright spot in a declining region. It mixes smart redevelopment, quality of life, and growth to create a stable, slow-growing market that will be thriving well into the foreseeable future. There are many neighborhoods to consider for buying properties in Columbus.
Properties in Worthington and downtown Columbus have higher than average median home prices, and their relatively low crime rates add additional appeal. Places like Victorian Village, where home prices remain higher than many other places in the city, support a strong local market, and they can signify a lower level of risk.
Another market that we suggest is the housing market in Jersey City, NJ. The Jersey City real estate market is seeing significant growth because it is close to New York City but isn’t NYC. It has a number of points in its favor, too, like a good job market and local amenities. Renters and buyers alike are taking notice and helping to make Jersey City the fastest-growing metropolitan area in the state.
Jersey City has been busy redeveloping old neighborhoods, encouraging a mix of new retail, luxury housing, and affordable housing. Jersey City is notable for the major redevelopment on the waterfront, known as the Shore, while properties there enjoy a great view of Manhattan. Jersey City takes things one step further and is setting up a “Friendly Building Program”, where developers build entire buildings where renting through AirBnB is allowed. This is an innovative development in the Jersey City housing market.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability. Consult with one of the investment counselors who can help build you a custom portfolio of turnkey cash-flow rental properties in the various growth markets across the United States.
All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching top real estate growth markets and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
References
- https://www.redfin.com/city/15702/PA/Pittsburgh/housing-market
- https://www.zillow.com/Pittsburgh-pa/home-values
- https://www.realtor.com/realestateandhomes-search/Pittsburgh_PA/overview
- https://www.avail.co/education/laws/pennsylvania-landlord-tenant-law
- https://www.clevelandfed.org/newsroom-and-events/publications/metro-mix/pittsburgh/mm-201805-pittsburgh.aspx
- https://www.cbre.us/about/media-center/pittsburgh-number-3-market-in-north-america-for-hi-tech-job-growth
- https://www.geekwire.com/2018/ready-not-tech-boom-brings-complex-changes-pittsburghs-real-estate-market/
