Pittsburgh Real Estate Market 2023

Pittsburgh Real Estate Market Trends & Statistics 2023

Although Pittsburgh’s real estate market has experienced significant changes in recent years, it still provides the cash flow that investors seek.

In this section, we’ll take a closer look at some of the top factors that make Pittsburgh one of the strongest real estate markets today, including population and employment growth. Explore Pittsburgh housing market trends in the following sections.

Data Sources:

• https://www.zillow.com/
• https://worldpopulationreview.com
• https://www.deptofnumbers.com/
• RealWealth Property Team Data

Pittsburgh median home values stats and descriptions 2022

Pittsburgh, PA has a median list price of $210,190 as of Oct 2022. That’s 38.77% less than the national average.

The median home value in Pittsburgh neighborhoods where RealWealth members invest is $150,000, which is 56% below the national average.

Pittsburgh’s housing market is a little bit competitive, scoring 43 out of 100, according to Redfin.

Pittsburgh median monthly rent stats and descriptions 2022

According to RealWealth data, the median monthly gross residential rent in Pittsburgh, PA (the Pittsburgh metro area) in 2022 was $1316. The average rent for a house in Pittsburgh is 33% below than the national median.

The Pittsburgh area has good potential for high cash flow with a RTV ratio of 0.63. This is 9.89% above the national average of 0.57%.

For RealWealth investors, the median RTV ratio was 0.87% in the neighborhoods where they invest, which is 52% higher than the national average of 0.52%.

Also, the demand for rental housing in Pittsburgh is high, as 53% of households rent their homes rather than buy their own property.

Pittsburgh median home value appreciation rate 2014-2022

In the past eight years, home prices in Pittsburgh have increased by a total of 62.51% from $129,340 to $210,190. In that same time period, the yearly home value appreciation rate for the Pittsburgh metro was 7.18%.

NeighborhoodScout reports that the average appreciation rate in Pittsburgh over the last ten years has been 90.91%, which ranks in the top 30% nationwide.

Pittsburgh median monthly rent appreciation rate 2014-2022

The median rent for a one-bedroom apartment in Pittsburgh has increased by 31.13% since 2014 and by 3.95% per year. Over 50% of Pittsburgh households rent due to the fact that home prices have increased twice as fast as rent prices.

But rent price appreciation hasn’t been slow either. In September 2022, Pittsburgh ranked second on a list of rental markets with the highest rate of rent increases, with a 20% increase from September 2021.

According to data from the US Census Bureau, the population of the Pittsburgh metro area was 2,353,538 in 2021. The population has declined by 0.15% in the past 11 years—a decline of 0.02% each year.

The population of the city of Pittsburgh is currently 302,425—a 0.18% decline since 2020 but it is still the second-largest city in Pennsylvania and 70th in the US.

Pittsburgh is a major hub for business and technology. The city’s workforce is highly skilled and diverse, and the region has been growing steadily since the Great Recession.

In fact, Pittsburgh added 28,100 new jobs between July 2021 and July 2022. But while this represents a 2.5% increase in employment over that time period, it also trails the national job growth rate by 35%.

As of August 2022, the unemployment rate in Pittsburgh was 4.8%. The U.S. unemployment rate at the time was 3.7%. Yet Pittsburgh’s economy continues to grow steadily with a GDP of over $136.3 billion, up 12% in the past ten years.

World-renowned companies such as Amazon, Facebook and Bossa Nova Robotics are fueling demand for skilled workers in Pittsburgh and attracting new residents from across the country (and around the world) who want to work for local businesses or start their own enterprises here.

The City of Pittsburgh has a thriving corporate business environment with ten Fortune 500 companies including Alcoa, The Kraft Heinz Company, United Steel Corporation (USX), Dick’s Sporting Goods Inc., PNC Financial Services Group Inc., PPG Industries Inc., calling Pittsburgh home.

Affordable real estate prices

Home prices in Pittsburgh are 39% lower than the average US home price.

The 2022 Demographia International Housing Affordability study, presented by the Urban Reform Institute, ranked Pittsburgh as the most affordable city to buy a home in the world.

This 18th annual edition of the study examined the cost of middle-income housing in 92 metropolitan areas across eight different countries during the third quarter of 2021. To rank affordability, it uses a metric called the median multiple—a measure that compares median house prices with median incomes. In Pittsburgh’s case, this metric is 2.7—lower than the median multiple for all other 92 metro markets that were analyzed in this study.

Growing job sector

Pittsburgh has seen a surge in tech jobs, and it’s not showing any signs of stopping. New data compiled by the Computing Technology Industry Association (CompTIA) indicates that the Pittsburgh metro area has net tech employment of over 60,000—a number that puts Pittsburgh 29th among United States metros for the highest number of tech jobs.

The Pittsburgh region gained 28,100 jobs between July 2021 and July 2022, a 2.5% increase over the previous year. Steady job growth is always a sign of a growing economy, which is favorable for real estate investing.

Steady home appreciation rate

Pittsburgh has been a steady performer, with home values increasing at a rate that is consistent with the rest of the country. From 2020 to date, median home values have jumped by over $50,000.

Between 2019 and 2022, the median home price in Pittsburgh increased by 33%, from $158,191 to $210,190. This was largely due to low housing inventory during this period. However, home values have been steadily rising even before the pandemic.

NeighborhoodScout reports that the Pittsburgh metro has seen a yearly appreciation rate of 7.18% in home values from 2014 to 2022. This ranks in the top 30% nationwide.

Strong rental market

A September 2022 report from Redfin ranked Pittsburgh second in terms of rent increases, with a 20% increase year over year.

And with more than 53% of households in the area renting rather than owning their homes, there’s a lot of competition for a limited number of apartments. That keeps vacancies low and rents increasing.

High quality of life ratings

Pittsburgh is a wonderful city to live in. And not only because it’s located in the beautiful state of Pennsylvania. It’s also affordable, safe, and has a high quality of life!

According to a 2018 Livability.com study, Pittsburgh is the 41st most livable city in the world, one of only six American cities to make the list. It’s also the 6th most livable city in America. The study takes into account factors like safety, healthcare, education and infrastructure in its rankings.

Housing in Pittsburgh is 39% less expensive than most other places in the US. The cost of living in Pittsburgh is lower than the national average and most cities in Pennsylvania. Some areas have higher costs, but overall costs for housing, utilities, groceries, transportation, health care, and miscellaneous goods and services are less expensive than average prices across America.

High student population

Student housing makes up a significant portion of Pittsburgh’s rental market. The area is home to 68 colleges and universities, including Carnegie Mellon University and the University of Pittsburgh. Both are leaders in research and development.

The University of Pittsburgh at Pittsburgh is a large public university located on an urban campus in Pittsburgh, Pennsylvania. It has 32,686 undergraduate students.

Carnegie Mellon University is a private institution founded in 1900. It has a total undergraduate enrollment of 7,365 students.

Newsworthy building developments and projects in Pittsburgh

Lower Hill Redevelopment

The Lower Hill redevelopment will transform the Hill District and have a significant impact on the entire Pittsburgh region.

The 28-acre redevelopment plan includes converting surface parking lots into a mix of office, retail, and housing. The redevelopment includes creating a shared parking district and hotel that will help to drive more traffic to the area.

In addition to residential units and a music venue operated by Live Nation, developers plan to build 190,000 square feet of retail space.

Oakland Crossings

Oakland Crossings is a large-scale redevelopment project that will transform 17 acres of South Oakland. The area, which is mostly along Halket Street and McKee Place, currently contains single-family homes that are occupied mostly by groups of students.

Walnut Capital plans to erect new, taller housing units to replace these homes. The developer’s plan also includes a 426-unit apartment complex with a 30000-square-foot grocery store.

Hazelwood Green

The 178-acre Hazelwood Green site in Pittsburgh’s Hazelwood neighborhood is a former steel mill that has been redesigned into a residential and commercial neighborhood.

The redevelopment of Hazelwood will include a 1.9-mile pedestrian and bike trail, a riverfront park, and hundreds of thousands of square feet of housing and office space. The first phase of development is expected to begin this year.

In November 2021, the Richard King Mellon Foundation announced a $100 million grant to the University of Pittsburgh to build a bio-manufacturing facility called Pitt BioForge on the site.

The Highline

The Highline is a cluster of massive late 19th-century brick buildings overlooking the Monongahela River. The first building is complete, but the other two are still under construction. The Highline is home to over 600,000 square feet of creative office and retail space.

Smallman Street redevelopment

The Strip District is a place where history and innovation are constantly colliding. While the neighborhood’s produce heritage has remained a staple, there’s no denying that change is in the air.

The ongoing development projects on Smallman Street are helping to preserve the Strip District’s past while bringing new life to this iconic part of Pittsburgh. And with over 750 apartments in the works in the next few years, Hudson Companies is making a big move toward redeveloping the 2900 block of Smallman Street.

These projects—including a food-centric marketplace—are expected to make Smallman Street (from 16th to 21st Streets) a safer, more engaging destination and add 160,000 square feet of mixed-use commercial and retail space.