2017 Market Overview
With a population of over 2.4 million in seven counties, the Pittsburgh Metropolitan Statistical Area is the 22nd largest city in the nation. The “Burgh” is known as “The City of Bridges” for its 446 bridges, and “The Steel City” for its former steel manufacturing base.
For decades, Pittsburgh was a city on the brink of collapse but recently it has made a huge comeback into the national spotlight. Why? Many are calling it the “Pittsburgh Renaissance.” Neighborhoods are being transformed almost overnight. Luxury boutique hotels are popping up all over the place, which is pretty cool according to Forbes. New office space is being built as well and filled by massive tech companies like Apple and Uber, and so much more!
According to visitpittsburgh.com, “Pittsburgh is proud to rank among the top places to live, work, and visit in the United States. Our city is consistently recognized with accolades from major travel and financial organizations as one of the most livable cities with one of the most viable economies. We have been honored as a first-rate city for livability, culture, and economy for several years.”
Median Household Income:
Median Home Price*:
Median Monthly Rent*:
Estimated Monthly Cash Flow:
Why Invest Here?The Steel City has clearly undergone a major transformation, becoming a world-class city and yet, home prices are still very low. This combination makes for a great cash flow opportunity in addition to a strong chance for equity growth over the long-term.
Pittsburgh Trends & Statistics 2017-2018
In this section, you will learn about the top factors that make Pittsburgh one of the strongest real estate markets today, including affordability, cash flow, and a strong chance for equity growth. Explore Pittsburgh’s housing market, population, and employment trends in the tabs to learn more.
Pittsburgh home values are more affordable than many other U.S. markets today
- In January 2017, the median price of three bedroom homes in Pittsburgh was $137,000, which is 27% less than the national average of $187,000.
- In the neighborhoods where RWN members invest, the median price of three bedroom homes in Pittsburgh was less than $73,000 in January 2017, which is a whopping 61% less than the national average.
- This shows us that home values in Pittsburgh are more affordable than many other U.S. markets today. This is especially true in the areas where RWN members are investing.
Pittsburgh offers investors a higher cash flow opportunity than the average U.S. metro today
- In January 2017, the median monthly rent for three bedroom homes in Pittsburgh was $1,143, which is 0.83% of the purchase price of $137,000. This is higher than the national price-to-rent ratio of 0.74%.
- In the neighborhoods where RWN members invest, the median monthly rent of three bedroom homes was $863, which is 1.19% of the $73,000 purchase price.
- This shows us that Pittsburgh offers investors a higher cash flow opportunity than the average U.S. metro today. This is even more true in the neighborhoods where RWN members are investing.
Pittsburgh home values have not appreciated as much as other U.S. markets since 2012
- In January 2012, the median price of three bedroom homes in Pittsburgh was $114,000. This means that in the last six years (Jan. 2012 to Jan. 2017), three bedroom homes in Pittsburgh have appreciated by more than 20%. During the same period, three bedroom homes increased by 29% nationwide.
- Although home values in Pittsburgh aren’t rising as quickly as other U.S. markets, prices have been increasing every year.
- Over the last six years, Pittsburgh home values have appreciated by about 4% annually, compared to the national annual growth rate of 5%.
- This shows us that Pittsburgh is a more stable real estate market that offers investors a long term opportunity for growth with less risk.
Pittsburgh rents have risen faster than the national average since 2012
- Between January 2012 and January 2017, the average rent for three bedroom homes in Pittsburgh increased by 18%. Nationally, rents only increased by 14.11% during the same period.
- This shows us that the monthly passive income opportunity in Pittsburgh is increasing at a faster rate than the national average.
Pittsburgh’s overall population has declined since 2010 but the millennial population has grown significantly
- Since 2010, Pittsburgh’s population has decreased slightly – less than 1%. During the same period, the national population size increased by over 4%.
- Although Pittsburgh’s overall population has declined since 2010, the number of millennials (aged 25 to 34) living in the area has grown significantly. In fact, Time recently ranked Pittsburgh in the top 10 U.S. cities where millennials are moving.
- This is a good sign for investors because millennials often prefer renting to buying (in 2017, homeownership for millennials is less than 13% nationwide), which means the demand for rental homes in Pittsburgh will likely rise in the coming years.
Pittsburgh did not create as many jobs as other U.S. cities in 2016
- In the past year, the number of jobs in Pittsburgh has increased by about 0.27%, which is lower than the U.S. annual job growth rate of 2.31%.
- Despite the decline in overall employment, Pittsburgh is experiencing employment gains in several sectors. For example, between September 2015 and 2016, there were 6,773 jobs created in the education and health services, leisure and hospitality, professional and business services, and STEM sectors. However, 6,447 jobs were lost from goods-producing industries, which created close to the net decline in employment for the metro area.
- All of this data shows us that demand in Pittsburgh is still rising at a steady rate among some “high-value” demographics, including millennials and people in STEM fields.
Pittsburgh is Very Affordable
- Home values in Pittsburgh are more affordable than many other U.S. markets today, especially in the areas where RWN members are investing.
- In the neighborhoods where RWN members invest, the median price of three bedroom homes in Pittsburgh was $73,000 in January 2017, which is a whopping 61% less than the national average.
Pittsburgh is Cash Flowing
- Pittsburgh offers investors a higher passive income opportunity than the average U.S. metro today. In the neighborhoods where RWN members are investing, the opportunity is even higher.
- As of January 2017, the median monthly rent of three bedroom homes in these neighborhoods was about $863, which was 1.19% of the $73,000 purchase price.
Pittsburgh Home Values are Rising Steadily
- Over the last five years (Jan. 2012-Jan. 2017), Pittsburgh home values have appreciated by about 4% annually, compared to 5% annual growth nationally. During this period, rents also increased by 3.3% annually, with a slightly lower national average increase of 2.7%.
- This shows us that Pittsburgh is more stable than many other real estate markets today, offering investors a long-term opportunity for equity growth and passive income with less risk.
Pittsburgh is Growing
- Despite decline in Pittsburgh’s total population and lower-than-average job growth, Pittsburgh is growing steadily in many “high-value” areas; jobs are being created in education and health services, leisure and hospitality, and technology sectors.
- In addition, millennials are moving here at a higher rate than most other U.S. metros. Both of these positive factors are good signs for real estate investors today.
- "#3 Best Big City to Live" - WalletHub
- "#6 Best City for First Time Home Buyers" - Business Insider
- "#11 Most Affordable City" - Forbes
- "#13 Safest City to Raise a Family" - Good Call
- "26 Rankings that Prove Pittsburgh is Better Than Any Other City" - Made in PGH
- "#48 Fastest Growing City" - Forbes
- "Why Move to Pittsburgh" - Weleski Transfer
- "#7 Cities Where Millennials Are Moving" - Time
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