{"id":170565,"date":"2024-04-15T12:06:08","date_gmt":"2024-04-15T18:06:08","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170565"},"modified":"2024-06-20T06:19:09","modified_gmt":"2024-06-20T12:19:09","slug":"why-pittsburgh-home-prices-are-rising-rapidly","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-pittsburgh-home-prices-are-rising-rapidly","title":{"rendered":"Home Prices in Pittsburgh Are Up 22%, Making It The Fastest Gainer in the U.S.\u2014Here\u2019s Why Prices There are Exploding"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC1902089141\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">Pittsburgh has the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.post-gazette.com\/business\/development\/2024\/04\/02\/pittsburgh-home-prices-redfin-bidding-war\/stories\/202404030018\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">hottest housing market<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in the country. Who knew? According to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.redfin.com\/city\/15702\/PA\/Pittsburgh\/housing-market\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Redfin<\/span><\/a><span data-preserver-spaces=\"true\">, Pittsburgh housing prices were up a mighty 22% from February 2023 to February 2024, making it the city with the fastest-growing house prices in the country.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Formerly the heart of the Rust Belt, the city has recently&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/tech\/pittsburgh-hot-tech-center-1a1ec776\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">reinvented itself<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;as a tech town, welcoming major players like Google, Facebook, Amazon, Uber, Apple, and Microsoft. It\u2019s not by luck. The city\u2019s Carnegie Mellon University boasts one of the country\u2019s most coveted computer science degrees, which turn out some of Silicon Valley&#8217;s top tech talent.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Chronic Housing Shortage<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, you might have a tough time if you want to invest in Pittsburgh. Part of the city&#8217;s problem is a chronic shortage of housing inventory.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That said, the average sales price for homes in Allegheny County was a palatable $275,000 in February, considerably less than the national median price of $412,227 according to the West Penn Multi-List as quoted in local paper the<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.post-gazette.com\/business\/development\/2024\/04\/02\/pittsburgh-home-prices-redfin-bidding-war\/stories\/202404030018\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Post-Gazette<\/span><\/em><\/a><em><span data-preserver-spaces=\"true\">.<\/span><\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The scarcity of inventory has resulted in bidding wars and an overheated market, with 26% of homes selling above listing price, according to Redfin&#8217;s data\u2014up by 2.7% on the previous year.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">John Petrack, vice president of the Realtors Association of Metropolitan Pittsburgh, told the Post-Gazette: &#8220;I&#8217;ve been around the industry for over 45 years, and I&#8217;m seeing the sales prices in certain neighborhoods in the city of Pittsburgh now exceed so many suburban locations.&#8221;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Pitt&#8217;s Tech Titans Bring in Big Money<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Two years ago, Google announced it was investing a further&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/technical.ly\/startups\/google-pittsburgh-investment\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">$15 million into Pennsylvania<\/span><\/a><span data-preserver-spaces=\"true\">, with a large chunk of that money expanding its Pittsburgh footprint, which already hosts over 800 Google employees. Additionally, smaller tech companies in the city raised more than&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.governing.com\/management-and-administration\/pittsburgh-tech-sector-grows-spurred-by-autonomous-vehicles\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">$3 billion<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in funding. They attracted 57 new investors last year, dominated by autonomous vehicle startups Aurora and Stack AV\u2014a 203% increase from 2022.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Downtown Is a Problem<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, despite shiny new tech hubs in downtown Pittsburgh, causing rents and home prices to spike, more conventional office buildings nearby have faced the same post-pandemic headwinds as other American downtowns, remaining vacant amid the increase in remote working and vagrancy.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Amid concerns that&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.wtae.com\/article\/downtown-pittsburgh-office-residential-tax-break\/60168214#:~:text=revenue%20from%20Downtown.-,Wilson%20is%20proposing%20legislation%20to%20give%20tax%20breaks%20to%20those,by%202028,%22%20Wilson%20said\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">50% of offices could be vacant by 2028<\/span><\/a><span data-preserver-spaces=\"true\">, there are proposals to &#8220;save downtown&#8221; by converting office space to residential living, easing inventory issues. However, such conversions do not happen overnight, are pricey, and would still not help ease the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/triblive.com\/local\/pittsburgh-council-gripes-about-gainey-but-passes-his-housing-plan\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">city&#8217;s affordable housing<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and increased homelessness issues.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Pittsburgh Still Cash Flows<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite the increase in home prices, because the median home prices are lower than in other competitive markets, it&#8217;s<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-192\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">&nbsp;still possible to cash flow<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;if you can find a home.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Also worth bearing in mind is that the city of Pittsburgh only comprises a small section of the greater urban area that is often included when people refer to the Pittsburgh market. These diverse municipalities are often far cheaper than the trendier city neighborhoods such as Lawrenceville, Mexican War Streets, and South Side Flats, as well as the long-established Oakland, Squirrel Hill, Shadyside, and Mount Lebanon neighborhoods.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">A Population Problem<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Like many Northern cities, the pandemic and remote work blindsided Pittsburgh, and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.post-gazette.com\/local\/region\/2024\/03\/14\/allegheny-county-population-delcine-census\/stories\/202403130091#:~:text=counties%20see%20shrinking%20population,overall%20drop%20of%209,807%20residents\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">recent census data<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;showed Allegheny County experiencing a sharp population decrease, which caused alarm. However, the loss might not be telling the entire story.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The older demographic of Rust Belt cities like Pittsburgh means a more significant loss of residents than in many other areas. With the aftershocks of the pandemic subsiding, Pittsburgh&#8217;s generally affordable housing and charming brick homes in historic neighborhoods outside the city mean it&#8217;s an attractive place to live and invest financially and aesthetically compared to other major American cities. The census data backs that up, with the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/triblive.com\/local\/regional\/pittsburgh-population-stable-outlying-suburbs-growing-says-new-census-estimates\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">suburbs showing real growth<\/span><\/a><span data-preserver-spaces=\"true\">, fueled no doubt by house prices.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Pricier Cities Are Losing Residents to Pittsburgh<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to Redfin&#8217;s data, Pittsburgh is attracting more residents from other pricier coastal cities than it is losing them to the Sunbelt (mainly Florida). While Pittsburgh&#8217;s tech nucleus has undoubtedly been a draw, a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rockethomes.com\/blog\/housing-market\/best-places-to-buy-a-home-on-65000-household-income\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">survey conducted last year by Rocket Homes<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and featured in the&nbsp;<\/span><em><span data-preserver-spaces=\"true\">New York Times<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;showed that Pittsburgh was one of the best 10 places to buy a home on a budget and, crucially, had by far the largest population out of all 10\u2014a key metric for potential investors.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Reasons to Invest in Pittsburgh Could Be Changing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">For many years, Pittsburgh was a place for cash flow. Its steady 2% annual appreciation meant no one would get rich quickly buying and selling homes. However, the recent price boom means the city has added another investment string to its bow.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">&#8220;The lack of inventory has meant that merely holding on to your real estate, claiming the tax benefits and appreciation, far outweighs the cash flow you can make these days,&#8221;&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/deaconhoover.com\/agent\/john-walker-209123\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">John Walker<\/span><\/a><span data-preserver-spaces=\"true\">, a long-term&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house flipper<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and real estate agent in the city, told BiggerPockets. \u201cWhen people ask me about investing now, I first tell them not to expect to get rich on cash flow. That takes time. However, if you buy right, you could increase your net worth substantially.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Any city needs to be diversified to be considered successful. While Pittsburgh\u2019s tech companies grab the headlines, it also has other established long-term draws, such as its sports teams (the Steelers, Pirates, and Penguins), multiple well-regarded universities, hospitals, and financial services (PNC Bank is headquartered here).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Diversification is the key to the city&#8217;s continued growth. While appreciating home prices might make existing homeowners and investors feel good, when the population is stagnant, it can create a false narrative. If people aren&#8217;t moving out of their homes because high interest rates won&#8217;t allow them to, that is quite different from people moving into the city due to job growth.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That said, Pittsburgh is still affordable and has solid hubs of employment that aren&#8217;t going anywhere. However, it urgently needs to fix its downtown problem. This means investing here makes sense, especially if you have a long-term vision.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_9d659e9e3c50cb8301336bb43dc5c661\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_a3a676f349910ed83ed801411364b2d5\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_c09223e9407420b43ba8348cae368d40 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/why-pittsburgh-home-prices-are-rising-rapidly&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/why-pittsburgh-home-prices-are-rising-rapidly&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Pittsburgh has the&nbsp;hottest housing market&nbsp;in the country. Who knew? According to&nbsp;Redfin, Pittsburgh housing prices were up a mighty 22% from February 2023 to February 2024, making it the city with [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":170568,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7381,7119],"tags":[],"class_list":["post-170565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-prices","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170565"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170568"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}