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Thinking about investing in Pittsburgh real estate in 2025? You're on the right track.
Despite economic shifts, Pittsburgh's real estate market shows promising stability and growth potential.
In this blog post, we will explore why investing in this city's property market is a wise decision.
We rely on solid, up-to-date data and statistics from trusted sources to guide our analysis.
By the end, we will present our own well-reasoned conclusion based on this comprehensive analysis. 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 livability score of 84 in Pittsburgh is considered excellent, indicating a high quality of life for its residents.
This score is supported by the city's affordable cost of living, which is significantly lower than many other major U.S. cities, making it attractive for both residents and investors. Additionally, Pittsburgh boasts a strong educational infrastructure with renowned institutions like Carnegie Mellon University and the University of Pittsburgh, which attract students and professionals from around the world.
Furthermore, the city has a vibrant cultural scene, with numerous theaters, museums, and music venues that enhance the quality of life and attract tourists. These factors contribute to a stable and growing real estate market, making it a promising area for investment.
However, if the livability score were to drop below 70, it might indicate potential issues that could affect property values negatively.
Source: AreaVibes
2) A local in Pittsburgh could afford a house in about 3.4 years, which is relatively quick
Signal strength: moderate
In Pittsburgh, it would take around 3.4 years for a local to buy a house, which is relatively short compared to many other cities.
This is a positive signal for potential investors because it indicates that the housing market is accessible to the average resident. With a median household income of approximately $66,219, locals have a reasonable chance to save and purchase a home.
The median home price in Pittsburgh is about $227,439, making it affordable for many families. This affordability suggests that there is a stable demand for housing, which is a good sign for investment.
If the time to buy a house were to increase significantly, say to over 5 years, it might indicate a less favorable market for investment.
Source: USCensus
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) Pittsburgh's current infrastructure projects, like the "Commercial Street Bridge Replacement" and "Downtown Redevelopment," are set to boost property values by 2026
Signal strength: moderate
Pittsburgh's ongoing infrastructure projects, such as the Commercial Street Bridge Replacement and Downtown Redevelopment, are key drivers of potential real estate value growth by 2026.
The Commercial Street Bridge Replacement Project, set for completion in July 2026, is a significant upgrade to local infrastructure. By improving traffic flow and safety on a bridge that carries 100,000 cars daily, it enhances the appeal of nearby areas. This project uses Accelerated Bridge Construction techniques, ensuring a faster and less disruptive process, which is attractive to potential property buyers and investors.
Meanwhile, the Downtown Pittsburgh Redevelopment Plan is a transformative initiative with various phases over 10 years, aiming for major milestones by 2026. This $600 million project focuses on revamping public spaces, increasing housing, and enhancing the downtown area. By converting the Gulf Tower into a mixed-use development, it boosts residential and commercial opportunities, making downtown a more desirable place to live and work.
Additionally, the Point State Park Renovation, expected to be completed by spring 2026, involves a $3.4 million investment in infrastructure improvements. These upgrades will enhance the park's appeal, potentially increasing the value of nearby real estate by making the area more attractive to residents and visitors.
Sources: Pittsburgh Magazine, Allegheny Institute, WESA, PA Media
4) By 2025, the population is expected to reach around 307,422
Signal strength: moderate
The projected population growth in Pittsburgh, Pennsylvania, reaching approximately 307,422 by 2025, suggests a positive outlook for real estate investment in the area.
Population growth is a key indicator of increased demand for housing. As more people move to or are born in a city, the need for residential properties rises. This demand can lead to higher property values and rental prices, making real estate a potentially lucrative investment.
Moreover, a growing population often stimulates the local economy. New residents contribute to the economy by spending on goods and services, which can lead to job creation and infrastructure development. This economic activity can enhance the attractiveness of the area, further boosting property values.
Additionally, the forecasted growth, although modest, indicates a stable and predictable market. Investors often prefer markets with steady growth as they present lower risks compared to volatile markets. The projected increase from 303,255 in 2023 to 307,422 by 2025 reflects a consistent upward trend, providing confidence to potential investors.
Sources: TribLive, Neilsberg, Nch Stats, Nch Stats (Forecast)
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) Airbnb or "short-term rental" in Pittsburgh offers a fairly appealing profitability rate of 7.0%
Signal strength: moderate
The cash-on-cash return on Airbnb in Pittsburgh is 7.0%, which is considered moderately attractive for investors. This percentage indicates that the income generated from renting out a property on Airbnb is relatively good compared to the initial cash investment.
In Pittsburgh, short-term tenants often include business travelers attending conferences or meetings, as the city hosts numerous corporate events. Additionally, tourists visiting for cultural attractions like the Andy Warhol Museum or sports events at PNC Park are common renters.
These types of visitors typically seek convenient and comfortable accommodations for their short stays, making Airbnb properties appealing. The steady flow of such visitors supports the demand for short-term rentals, contributing to the attractive cash-on-cash return.
If the cash-on-cash return were to drop below 5.0%, it might suggest that the investment is less favorable, indicating potential issues with profitability.
Source: Mashvisor
6) The "cash-on-cash return" of 5.0% for long-term rentals in Pittsburgh is reasonably appealing
Signal strength: moderate
The cash-on-cash return of 5.0% in Pittsburgh indicates that the property investment can generate a decent return relative to the cash invested. This percentage is considered moderately attractive because it suggests a balance between risk and reward, making it a viable option for investors. In Pittsburgh, the rental market is supported by long-term tenants who are often students, medical professionals, and tech workers.
These groups are drawn to the city due to its renowned universities and hospitals, as well as a growing tech industry. This consistent demand for rental properties helps ensure a steady income stream for property owners. Additionally, the affordable cost of living in Pittsburgh makes it appealing for tenants to stay long-term, further stabilizing rental income.
However, if the cash-on-cash return were to drop below 3.0%, it might indicate that the investment is less favorable. This lower return could suggest higher risks or lower profitability, making it less attractive for potential investors.
Source: Mashvisor
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) Pittsburgh's median home price is significantly lower, at 48% less than the national average
Signal strength: minimal
The fact that Pittsburgh's median home price is 48% below the national average suggests that there is significant room for property value appreciation. This means that buying a home in Pittsburgh could be a strategic investment opportunity as the market has the potential to grow and catch up with national trends.
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 might be small single-family homes in neighborhoods such as Homewood, where prices are lower due to economic factors.
Investors should consider these dynamics when evaluating potential returns, as lower initial costs can lead to higher profit margins if the market continues to rise. The disparity in property prices across different areas of Pittsburgh offers a range of investment opportunities, from high-end to more affordable options.
If the median home price in Pittsburgh were to rise significantly above the national average, it might indicate that the market is becoming less favorable for new investments.
Source: Zillow
So, is it a good time to invest in Pittsburgh real estate in 2025? Absolutely, it is.
Investing in Pittsburgh real estate in 2025 is a solid option due to several compelling factors.
First, the city boasts a livability score of 84, indicating a high quality of life supported by an affordable cost of living and a strong educational infrastructure. This makes Pittsburgh attractive to both residents and investors. Additionally, the median home price is 48% below the national average, offering significant room for property value appreciation.
Moreover, ongoing infrastructure projects like the "Commercial Street Bridge Replacement" and "Downtown Redevelopment" are set to boost property values by 2026. The city's population is also expected to grow to 307,422 by 2025, indicating a stable and predictable market. Finally, the cash-on-cash return of 5.0% to 7.0% for both long-term and Airbnb rentals is reasonably appealing, suggesting a balance between risk and reward.
Related analyses:
- Here is why prices are going to climb in 2025 in Pittsburgh