Pittsburgh boasts an estimated population of 310,000, making it the second-largest city in the state of Pennsylvania. Still dubbed “The Steel City” due to its prominent history in steel production, the area contains no mills within its boundaries today. Instead, it’s been leading the charge in forward-thinking areas like high-tech medical devices, computer system design, and scientific research.
Reed Pirain reports that the diverse economy in Pittsburgh, PA, makes it a good place for real estate investments over the next 12 months.
Pittsburgh Housing Market Statistics
Despite the considerable changes experienced by the real estate market in the city recently, it’s still set to bring investors the cash flow they seek.
With an average home price of 38.77% below the national average ($210,191 instead of $343,292) and average monthly rent 10% above the national average, the area promises excellent returns for rental property investors.
According to data, the median home value in the most popular investment neighborhoods is just $150,000, giving even higher returns to purchasers.
As for the RTV (rent-to-value ratio), it’s 0.63. That’s 9.89% above the country’s average of 0.57, ensuring the area boasts great potential for high cash flow.
Heading into 2023, the demand for rental housing in the city is still extremely high, with over half the location’s residents renting rather than owning a property.
Housing to Remain Affordable Throughout This Year
Other metro cities across the United States of America are becoming increasingly less affordable, but Pittsburgh doesn’t fit that mold. Analysts predict that 2023 will see the area retain its affordability, even amid steady population growth.
Rehabilitation and new development efforts are thought to be driving this reliability, with Governor Tom Wolf announcing 12 new projects in the greater Pittsburgh region at the end of 2022. They’re set to optimize the area’s infrastructure and make substantial residential improvements.
Steady Home Appreciation Rates to Continue
From 2020 to last year, Pittsburgh’s median home values increased by over $50,000. Investors certainly benefited from the steady appreciation, and this advantage is set to continue throughout the next 12 months.
During the period of tight inventory amid the COVID-19 pandemic, the median home price skyrocketed to $210,190 from $158,191, representing a 33% increase. But analysts note that the prices were already rising before the unprecedented times.
Despite High Inflation, Local Leaders Stay Optimistic About Pittsburgh’s Housing Market
Most markets will likely experience contractions this year, but the Pittsburgh region is forecasted to grow by 4.2% in 2023 compared to the year before. That expectation ranks the city 12th among the 100 biggest metropolitan areas in the country.
With that said, stakeholders are assessing the potential impact of rising interest and inflation on the location’s housing market. Although, local leaders are optimistic about its resilience to such pressures.
Overall, the Outlook is Positive
Zillow’s spring 2023 list of the best first-time buyer markets displays the positive trends of Pittsburgh’s real estate situation. Favorable rent affordability, healthy inventory-to-buyer ratios, and a low share of listings are sure to stick around in the coming months.