With real estate remaining a popular investment option, many investors are looking into investment properties in major cities like Pittsburgh. As the second largest city in Pennsylvania, Pittsburgh has seen steady growth and offers attractive rental yields. This article will examine pittsburgh investment property reviews from 2020 to provide an overview of the local real estate market and help potential investors make informed decisions.
Strong rental demand and stable property prices in Pittsburgh
Reports show that Pittsburgh has experienced rising rental demand in recent years while maintaining relatively stable property prices. The city’s major universities and growing tech scene bring in a steady influx of renters. Investment properties near top employers and amenities have proven most popular. Despite new construction, vacancy rates have dropped below 5% while rents continue trending upwards in desirable neighborhoods like Oakland and Shadyside.
Average cap rates around 6-8% for Pittsburgh investment properties
Investment property reviews from 2020 indicate that cap rates for Pittsburgh real estate investments averaged 6-8%. This range allows investors to achieve reasonable cash-on-cash returns. Multifamily properties and student housing achieved the highest returns, while cap rates were lower for retail and office assets. Investors are advised to run the numbers thoroughly and account for management costs and vacancies when calculating returns.
Appreciation lags but Pittsburgh offers stability
While Pittsburgh has not seen the rapid home price appreciation of other markets, its slower growth makes it attractive for investors looking for stability. The city did not experience the extremes of the housing bubble and prices have grown around 3% annually over the past decade. Steady population and job growth provide underlying support for real estate markets. Investors hoping for quick returns may want to look elsewhere but those focused on cashflow should still find Pittsburgh appealing.
Challenges include older housing stock and taxes
Pittsburgh investment property reviews also point out some of the challenges facing investors in the local market. Much of the city’s housing inventory dates to the first half of the 20th century. While the older architecture is charming, rehabs and maintenance can prove costly. High property tax rates compared to other Rust Belt cities also cut into returns on rental properties. Investors should budget appropriately for repairs and taxes when acquiring properties.
Based on 2020 reports, Pittsburgh offers a relatively stable real estate investment environment with reasonable returns. The city’s large student population and job growth fuel rental demand, supporting higher occupancy rates. However, slower appreciation and higher costs pose some challenges. Investors should carefully evaluate properties, local submarkets, and expected returns before buying.