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Hoping for a drop in Pittsburgh property prices in 2025? Don’t count on it.
Despite economic shifts, Pittsburgh's real estate market is poised for growth, driven by increasing demand and limited housing supply.
Let’s explore why property prices in this city are expected to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, ensuring our analysis is grounded in reality.
By thoroughly examining this information, we draw our own conclusions, which we share at the end of this blog post. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Pittsburgh boasts an impressive livability score of 84, highlighting its excellent quality of life
Signal strength: strong
The fact that the livability score in Pittsburgh is 84 is a strong indicator that housing prices might rise in 2025. This score is considered excellent because it reflects the city's high quality of life, which includes safety, amenities, and education. These factors make Pittsburgh an attractive place to live, drawing more people to the area.
One specific characteristic that contributes to this high score is the vibrant cultural scene, with numerous theaters, museums, and music venues. Additionally, Pittsburgh is known for its strong educational institutions, such as Carnegie Mellon University and the University of Pittsburgh, which attract students and professionals alike. The city's affordable cost of living compared to other major cities also plays a significant role in its livability.
As more people move to Pittsburgh for these reasons, the demand for housing is likely to increase, leading to higher prices. Investors should consider these factors when evaluating the potential for real estate growth in the area.
If the livability score were to drop below 70, indicating a decline in quality of life, it might suggest that housing prices could stagnate or even decrease.
Source: AreaVibes
2) Pittsburgh home values have risen by 2.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Pittsburgh have already changed by 2.5% since last year is a strong indicator of a rising trend in the housing market. This change suggests that there is a growing demand for homes, which often leads to increased prices as more buyers compete for available properties.
Currently, the median home price in Pittsburgh is around $227,439, which is relatively affordable compared to other major cities. Additionally, the median sales price per square foot is about $164, indicating that there is room for growth as the market continues to evolve.
These figures suggest that investing in Pittsburgh real estate could be a wise decision, as the market is showing signs of potential appreciation in the coming years. If the trend continues, we might see further increases in home values by 2025, making it a potentially lucrative opportunity for investors.
However, if the market were to experience a significant drop in demand or economic downturn, this signal might not hold true, and prices could stabilize or even decrease.
Source: Redfin
We created this infographic to show how property prices in Pittsburgh compare to other big cities in Pennsylvania. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) A local in Pittsburgh could buy a house in about 3.4 years, which is relatively quick
Signal strength: moderate
In Pittsburgh, it currently takes around 3.4 years for a local to save enough to buy a house. This relatively short time frame suggests that housing is still affordable compared to many other cities.
With a median household income of about $66,219, residents have a decent earning capacity. The median home price is approximately $227,439, which aligns well with the income levels, making homeownership accessible.
As more people realize this affordability, demand for housing is likely to increase, potentially driving up prices. Investors should consider that increased demand often leads to higher prices, making it a good time to invest.
If the time to buy a house were to increase significantly, say to over 5 years, it might indicate that prices are stabilizing or even decreasing.
Source: USCensus
4) In Pittsburgh, about 31% of homes sell for more than their listing price
Signal strength: moderate
In Pittsburgh, around 31% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is fierce and they are eager to secure a property.
This kind of market behavior typically suggests that housing prices are on an upward trend, as demand outpaces supply. If more people are interested in buying homes than there are homes available, prices tend to rise to balance the market.
For someone considering investing in real estate, this is a positive sign that property values may continue to increase in the future. However, if the percentage of sales closing above the listing price were to drop significantly, say below 10%, it might indicate a cooling market.
Source: Zillow
Our team designed this infographic to show how competitive the real estate market in Pittsburgh is vs. other major cities in Pennsylvania. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Two major websites confidently predict that home prices in Pittsburgh will rise in 2025
Signal strength: moderate
There are two major websites forecasting a positive growth for home prices in Pittsburgh in 2025, which suggests a potential upward trend in the market.
Among the forecasts, Realtor is the most optimistic with a prediction of a 4.70% increase, followed by Redfin at 4%. In contrast, Zillow predicts a decline of -1.30% for home prices in the same period, indicating a significant gap in expectations.
While these forecasts provide valuable insights, it's important to remember that they should be taken with caution as they are based on predictive models. We will also rely on strong, reliable, and actual data to make a more informed and professional judgment about the market.
If the majority of forecasts were to predict a consistent decline in home prices, it would suggest a different market outlook.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
6) Pittsburgh's median home price is significantly lower, at 48% less than the national average
Signal strength: minimal
The fact that Pittsburgh still has a median home price 48% below the national average suggests that there is significant room for growth in the housing market. As the national housing market continues to rise, Pittsburgh's lower prices make it an attractive option for investors looking for potential appreciation.
In Pittsburgh, the most expensive properties are likely to be luxury homes in areas like Shadyside, where demand is high due to proximity to amenities and cultural attractions. On the other hand, the cheapest properties are often small, older homes in neighborhoods like Homewood, which may require renovation but offer affordability.
Investors might find opportunities in these lower-priced areas, as improvements and increased demand could drive up values. The disparity between Pittsburgh's prices and the national average indicates potential for price increases as the market catches up with broader trends.
If Pittsburgh's median home price were to rise to within 10% of the national average, it might suggest that the market has reached a saturation point, reducing the likelihood of further significant increases.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Pittsburgh vs other major places in Pennsylvania. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) In Pittsburgh, home prices have steadily increased by an average of 7.2% each year over the past decade
Signal strength: minimal
The fact that home prices in Pittsburgh have appreciated at an average rate of 7.2% over the last decade is a noteworthy signal for potential investors.
This consistent growth rate suggests a history of demand and price growth, which can indicate favorable conditions for future increases. While past performance is not a guarantee of future results, historical trends often provide valuable insights into market dynamics.
Investors should consider that a positive 10-year average appreciation reflects a stable and growing market. However, it's crucial to remember that market conditions can change due to various factors, such as economic shifts or policy changes.
If the appreciation rate were to drop significantly below historical averages, it might suggest a different trend or market condition.
Source: NeighborhoodScout
So, are Pittsburgh's home prices set to rise in 2025? Absolutely!
Pittsburgh's housing market is poised for growth, and here's why. The city boasts a livability score of 84, reflecting its high quality of life, which is a magnet for new residents. This influx of people is likely to drive up demand for housing, pushing prices higher.
Moreover, home values have already increased by 2.5% over the past year, signaling a rising trend. With a median home price of $227,439, Pittsburgh remains affordable compared to other major cities, making it an attractive option for buyers and investors alike.
Additionally, about 31% of homes sell for more than their listing price, indicating strong buyer competition. Forecasts from major websites like Realtor and Redfin predict further price increases of up to 4.70% in 2025. Given these factors, it's clear that Pittsburgh's housing market is on an upward trajectory.
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- Yes, investing in real estate is a solid option in 2025 in Pittsburgh