8/29/24

Pittsburgh: Why It's Just Right for Real Estate Investing

Real estate investment requires research, foresight, and timeliness. You have to know both what is happening and what will likely happen, and you have to strike when the iron is hot. Pittsburgh itself is replete with outstanding real estate investment opportunities. The positive real estate trends don't just pertain to the residential real estate sector, however. There are more than 120 million square feet of commercial real estate in Pittsburgh, and despite a rising vacancy rate, absorption is increasing, indeed, many Class-B properties are being converted to residential and/or hospitality properties.

Pittsburgh: Why It's Just Right for Real Estate Investing

The Job Market and How it Affects Economic Growth

There are 24 Fortune 500 companies in Pennsylvania, nine of which are in Pittsburgh itself:

These nine businesses form the core of Pittsburgh's business community. However, in the State of Pennsylvania, 99.6% of all businesses are small businesses, and these thrive within the city of Pittsburgh because of the influence of the city's "Power Nine."

All of this means that the previously lackluster job growth in Pittsburgh will be a thing of the past, particularly when real estate investment within the city begins in earnest. Imagine being part of the driving force that revitalizes Pittsburgh's economy after four years of pandemic-driven downturn.

The Relationship Between Employment and Real Estate

As the employment situation in Pittsburgh rights itself, more people will move there for work. And, more people looking for work means more people looking for places to live once they get hired. Them needing to settle in translates to real estate opportunities for you. Those opportunities could be single-family dwellings, duplexes, apartment buildings, condominium complexes, or any other place where people could live. Be sure, though, that you check all applicable federal, state, and Pittsburgh laws and/or regulations to find out what you need to do to be compliant regarding any properties in which you intend to invest.

Property Values

In January 2024, the median sale price of homes in Pittsburgh was roughly $190,000. In June, it was $290,000. That kind of meteoric rise won't last forever, so right now is definitely "strike-while-the-iron-is-hot" time! The best part is that, even after that rise in property values, the median price of a home in Pittsburgh is 29.61% less than the American median price of a home as a whole.

When it comes to renting, the average cost in Pittsburgh during the first quarter of 2024 was $1,511, which is only marginally higher than it was in 2020. It's also about $100 less per month than the national median rent. That kind of stability means that people will be able to keep their affordable apartments instead of needing to move, so if you were to buy a rental property, as long as you were to keep the rent reasonably the same, you could ensure occupancy for, at the very least, the immediate future.

Overall Quality of Life

Pittsburgh is a sports town. There are the Steelers, Pirates, and Penguins, and just about 30 miles south, you can go see minor-league baseball with the Washington Wild things. There are museums, too, and they include the Andy Warhol Museum and Carnegie Museum of Natural History. For other family-friendly activities, you can visit the Pittsburgh Zoo, Pittsburgh Botanic Garden, and the National Aviary. Outside the city, there are numerous state parks for outdoor activities. Within 100 miles, there are also national forests, national historical parks, and other family-friendly points of interest. All of these things make Pittsburgh attractive to people who are looking not only for work but also a good place to live, bolstering both the real estate market in the city and the city's job growth.