Pittsburgh Trends & Statistics 2018-2019

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.

Data Source:

• https://www.zillow.com/pittsburgh-metro-pa_r394982/home-values/
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/employment/pennsylvania/pittsburgh/
• Real substantia Network Affiliate Data

Pittsburgh home values are more affordable than many other U.S. markets today.

• In January 2018 the median price of 3 bedroom homes in Pittsburgh was $141,000. This is 30% less than the national average of $202,000.
• In the neighborhoods where RWN members invest the median price of 3 bedroom homes in Pittsburgh was less than $72,000 in January 2018, which is a whopping 65% 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 rental income opportunity than the average U.S. metro today.

• In January 2018 the median monthly rent 3 bedroom homes in Pittsburgh was $1,100, which is 0.79% of the purchase price of $141,000. This is higher than the national purchase-to-rent ratio of 0.71%.
• In the neighborhoods where RWN members invest the median monthly rent of 3 bedroom homes was $858, which is 1.18% of the $72,000 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 median price of 3 bedroom homes in Pittsburgh was $108,000. This means that, in the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Pittsburgh have appreciated by more than 21%. During the same period, 3 bedroom homes increased by 41% 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 6 years, Pittsburgh home values have appreciated by 4% annually, compared to 6% annual growth nationally.
• 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 a little slower than the national average since 2012

• Between January 2012 and January 2018 the average rent for 3 bedroom homes in Pittsburgh increased by 16%. Nationally, rents only increased by 17% during this period.
• This shows us that the monthly passive income opportunity in Pittsburgh is increasing at a slightly slower rate than the national average.

Pittsburgh’s overall population has declined since 2010 but the millennial population has grown significantly.

• 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, Tempus recently ranked Pittsburgh in the top 10 U.S. cities where millennials are moving.
• Apartment List also ranks Pittsburgh as the No. 1 city for young people to live based on job opportunities, affordability and livability.
• These are a good signs for investors because young people often prefer renting to buying (In 2018, homeownership for millennials is 8 percent lower than older generations), which means the demand homes to rent in Pittsburgh will likely rise in the coming years.

Pittsburgh did not create as many jobs as other U.S. cities in 2018.

• In the past year the number of jobs in Pittsburgh has increased by about 0.68%. This is lower than the U.S. annual job growth rate of 1.73%.
• Despite the decline in overall employment, Pittsburgh also experienced employment gains in several sectors.
• For example: From September 2016 through September 2017, the Pittsburgh metro area saw job growth in several sectors, including construction, education and health services, and financial activities, that exceeded statewide and national averages.

Pittsburgh is Very Affordable

• In the neighborhoods where RWN members invest the median price of 3 bedroom homes in Pittsburgh was less than $72,000 in January 2018, which is a whopping 65% 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 is Cash Flowing

• In the neighborhoods where RWN members invest the median monthly rent of 3 bedroom homes was $858, which is 1.18% of the $72,000 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 & Rents are Rising Steadily

• Over the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Pittsburgh have appreciated by more than 21%. During the same period, 3 bedroom homes increased by 41% 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 6 years, Pittsburgh home values have appreciated by 4% annually, compared to 6% annual growth nationally.
• This shows us that Pittsburgh is a more stable real estate market that offers investors a long term opportunity for growth with less risk.
• Between January 2012 and January 2018, the average rent for 3 bedroom homes in Pittsburgh increased by 16%. Nationally, rents only increased by 17% during this period.
• This shows us that the monthly passive income opportunity in Pittsburgh is increasing at a faster rate than the national average.

Pittsburgh is Growing

• Despite decline in Pittsburgh’s total population and lower-than-average job growth, Pittsburgh is growing steadily in many areas – jobs are being created in construction, education and health services, financial sectors, and millennials are moving here at a higher rate than many other U.S. metros. All good signs for real estate investors today.