Pennsylvania has long been a popular destination for real estate investors, thanks to its affordability, strong job market, and growing population. When looking for investment properties for sale in PA, investors should focus their search on certain cities and neighborhoods that offer the best returns. They should also understand which property types make the most sense based on local tenant demand. This article will explore the top areas and real estate niches investors should target when buying investment properties in Pennsylvania.
Major Pennsylvania Cities Offer Strong Fundamentals for Investment Properties
The major metro areas of Philadelphia, Pittsburgh, Harrisburg, Allentown, and Erie provide a solid foundation for real estate investment in Pennsylvania. Major cities like these tend to have higher population and job growth, leading to more demand for rentals. Philadelphia and Pittsburgh in particular have thriving economies and affordable home prices compared to other major East Coast cities. Areas close to downtowns and universities generate strong rental demand. Established neighborhoods with a housing stock of single-family homes or smaller multi-family buildings are ideal for out-of-state investors. When evaluating specific neighborhoods and properties in these metro areas, investors should research price trends, income and population growth, and infrastructure improvements.
Student Housing and Small Multifamily Units See High Occupancy
Pennsylvania is home to several major universities such as Penn State, Temple, and the University of Pittsburgh. The student populations at these schools create a constant demand for off-campus student housing. Investors should target properties for rent near campuses that can accommodate groups of students. Duplexes and smaller multifamily buildings from 3-20 units have proven to be a sound investment niche across Pennsylvania. The smaller size makes management easier for remote investors while meeting the needs of students, young professionals, and small families.
Industrial and Flex Space Receives Strong Leasing Activity
With its proximity to major East Coast cities and affordable real estate, Pennsylvania has also seen significant growth in industrial and manufacturing jobs. This creates strong demand for industrial facilities, warehouses, and flex space suitable for small businesses. Investors can target small to mid-size industrial properties in cities like Reading, Lancaster, Scranton, and Bethlehem which have active industrial markets. Newer Class A warehouse space along major highways near Philadelphia and Pittsburgh also presents opportunities, though buyers will pay a premium.
Retail May Face Headwinds as E-Commerce Advances
Pennsylvania’s retail real estate has experienced challenges in recent years as more shopping moves online. Investors are advised to be cautious of aging shopping centers and malls whose valuations may continue to decline. However, well-located neighborhood retail plazas that cater to essential businesses like grocery stores, banks, and restaurants have shown resilience. Investors should focus on community retail properties that face limited retail competition in their immediate vicinity within strong housing markets.
Pennsylvania’s major metros, student housing, multifamily properties, and industrial real estate present opportunities for investors seeking stable cash flow and value appreciation. Carefully researching local market conditions and trends is key to identifying the best investment properties for sale in PA.