Yes, Pittsburgh is among the best cities in America for making money on real estate investments.
House flippers, entrepreneurs looking for rental properties with strong cash flow to hold for the long term, and other investors have made a killing investing in Pittsburgh real estate for years now.
If you're considering investing in the Pittsburgh real estate market and wondering if buying property in Steel City will be worth your money, keep reading because I'll be sharing with you several reasons why buying property in Pittsburgh continues to appeal to many investors.
Why Is the Pittsburgh Real Estate Market So Enticing to Investors?
Here are five good reasons to invest in real estate in Pittsburgh.
Pittsburgh Real Estate Is Affordable
Many people want to begin investing in real estate but are discouraged by the significant down payment frequently needed to purchase their first property.
With Pittsburgh recently being named the most affordable city in the world to buy a home, it appeals to those looking to invest in real estate but don't have a lot of capital for their venture.
The city offers a wide selection of fantastic houses at reasonable pricing, providing investors with the chance to buy low and rent out or refurbish and sell high.
The median price of a home in Pittsburgh in October 2022 was roughly $225,000, which was significantly less than the $397,862 national median price of a home.
Sheraden, with a median listing price of $121K, is one of Pittsburgh's most affordable neighborhoods. (See our guide to Pittsburgh's best neighborhoods to live in here). Additionally, you can find two and three-bedroom homes for less than $100,000 in some neighborhoods undergoing redevelopment.
At such prices, if you're a well-capitalized real estate investor, you can purchase multiple houses in Pittsburgh for less than the cost of a single residence in expensive markets like Los Angeles, where the typical home sale price is $922K.
Pittsburgh Has a Strong Renters Market
Pittsburgh is home to more than 60 higher education institutions with thousands of students and faculty, including The University of Pittsburgh, the largest of them all, with 30,000+ students.
Additionally, hundreds of businesses, including global leaders like Google, Amazon, Apple, Facebook, IBM, Microsoft, and Uber, are located in Pittsburgh and draw thousands of professionals to the city annually.
Over 50% of Pittsburgh residents rent rather than own property, so if you're looking to buy rental homes in the City of Steel, you'll have a big pool of potential tenants to draw from.
Property owners benefit from few vacancies and high rental yields thanks to the enormous demand for rental homes.
Pittsburgh, Pennsylvania's median rent for a two-bedroom apartment as of November 19, 2022, was $1,500. This represents an 8% increase from 2021.
Pittsburgh Home Prices Have Been Rising Steadily
Pittsburgh's real estate market has historically exhibited consistent and moderate growth and is in the top 10% nationally for annual real estate appreciation.
Recent data reveals that Steel City property values have risen by 14.5% in the past year and will do so again in 2023.
Pittsburgh has also had a 63%+ growth in property values over the past five years, and the median home price has increased from $111,000 to $226,443 from 2012, a gain of about 104%.
Rent has increased by about 6% annually.
As an investor, even slight variations in the rate of house appreciation can have a significant impact on the long-term value of your investment.
Pittsburgh fix-and-flips are among the most lucrative in the nation if you're not intending to acquire property and hold to sell later after a significant price appreciation, delivering an average 160%+ return on investment.
Pittsburgh Is a City That Favors Landlords
The Pittsburgh real estate market provides buy-to-rent investors with several advantageous laws.
For example, Pittsburgh does not have rent control legislation, so you can set the rent at whatever amount you like.
It goes without saying that if you want to keep your tenants, you should only increase rent in moderate or realistic amounts at the end of a lease term rather than doubling or tripling it.
To avoid experiencing prolonged periods of vacancy, your asking rent for a newly purchased rental property should be in line with current market averages.
Compared to most US cities, the eviction process in Pittsburgh, Pennsylvania, is also less complex. The law permits you as a landlord to give a tenant a 10-day notice to pay rent or vacate if they don't pay rent on time or violate the terms of the lease.
Additionally, there are no legal restrictions on the amount of late fees you can charge your renters, and although it is advised, you're not required to include late fee information in the lease agreements.
Homebuyers in Pittsburgh Face Little Competition
There is still strong competition for homes in many parts of the country despite the property market cooling off after being super hot over the past two years.
However, Pittsburgh has some of the lowest house buyer competition nationwide. This implies that if you want to buy real estate in Steel City, you might be able to do it without getting into a bidding war that would make you pay more for the home you want.
HomeBuyers of Pittsburgh: The #1 Professional Home Buyer
Are you interested in making a real estate investment in Pittsburgh? Contact Homebuyers of Pittsburgh at 412-444-8914 or info [@] urbanpgh.com, and we'll be happy to provide you with insight about the Pittsburgh real estate market's current trends to help in your decision-making.
Additionally, we have many investment properties with above-average returns we are selling at fair rates, which you might think about investing in.
With over ten years of expertise in the Pittsburgh real estate market, we have assisted hundreds of investors in finding the ideal investment homes, and we would love to assist you in the same way. Please get in touch with us today!