Pittsburgh Investment Property for Sale - 2024 Rental Home Appreciation

The Pittsburgh real estate market has been a solid investment market for years. Why? Affordable home prices, reasonable appreciation rates, and a robust rental market.

Like Detroit, the Pittsburgh housing market is known for its fixer-uppers. Fortunately, many real estate flippers are turning them into excellent investment properties, which helps attract renters to Pittsburgh.

The Pittsburgh area offers prospective renters affordable housing, high quality of life, and job opportunities. It offers real estate investors a tremendous opportunity to earn rental income.

Pittsburgh's Attractive Housing Market

Real estate investors can find nearly every property type in Pittsburgh’s property listings. Whether you’re looking to invest in renovation, single-family homes, or multi-family housing, there’s a Pittsburgh investment property for you.

Pittsburgh is home to many great neighborhoods for real estate investors to consider. They include Bloomfield, Brookline, Lawrenceville, New Castle, and Weirton.

• Bloomfield: Bloomfield is located northeast of Downtown Pittsburgh, south of Lawrenceville. It’s known as the city’s “Little Italy” and is an eclectic neighborhood with many restaurants, bars, and shops. The median listing price in Bloomfield is $197/sqft, and the median sales price is $325,000. The median rent is $1,300/month.
• Brookline: Brookline is in the South Hills of Pittsburgh along Highways 51 and 19. It’s named after the Boston neighborhood settlers felt it resembled. It’s one of the largest neighborhoods in Pittsburgh and offers a dense suburban feel. The median listing price in Brookline is $151/sqft, and the median sales price is $199,900. The median rent is $775/month.
• Lawrenceville: Lawrenceville is northeast of Downtown Pittsburgh, along the Allegheny River. It’s an old industrial neighborhood transformed into a trendy hub of restaurants, shops, and bars. The median listing price in Lawrenceville is $254/sqft, and the median sales price is $375,000. The median rent is $1,600.
• New Castle: New Castle is located 50 miles northeast of Downtown Pittsburgh along I-376. It’s considered a very friendly, family-oriented, small city. The median listing price in New Castle is $74/sqft, and the median sales price is $109,900. The median rent is $695/month.
• Weirton: Weirton, West Virginia, is located 36 miles west of Pittsburgh, just across the state line. It offers a small-town feel with many independently-owned bakeries and shops. The median listing price in Weirton is $86/sqft, and the median sales price is $124,900. The median rent is $625/month.

A few other neighborhoods worth noting are Oakland, known as the academic and healthcare center of Pittsburgh; East Liberty, home to the Pittsburgh Glass Center Arts School; Carrick, a wealthier neighborhood with excellent public transportation; Knoxville, home to 13 historic buildings; Shadyside, the “Haight Ashbury” of Pittsburgh; South Side, a national historic district; and Wilkinsburg, known for its historic houses and renovated commercial real estate buildings. Whatever you’re looking to invest in, Pittsburgh has something to offer.

Rental Home Appreciation in Pittsburgh

Pittsburgh has a robust rental market. In fact, 58% of households in Pittsburgh are renter occupied. Affordability and quality of life are why many people in Pittsburgh rent. Affordability, demand, and appreciation are the main reasons people invest in a Pittsburgh rental property.

According to Realtor, the median listing price in Pittsburg is $183 per square foot with a median sale price of $244,900. Zillow’s Home Value Index reports an 11.8% change since last year. The median rent in Pittsburgh is $1,420 per month. What’s more, Pittsburgh has a cap rate of 1.1% on traditional rentals. That’s a lot of potential to earn a good return on investment.

A Pittsburgh rental property presents a great investment opportunity for real estate investors to increase their cash flow.

Economic Growth in Pittsburgh

Pittsburgh, Pennsylvania, was once a hub of U.S. steel production and coal mining. Like Detroit, the city’s economy took a hit when many of the factories and mines closed. But the city was able to use its innovative roots to propel its future. Today, Pittsburgh is considered one of the best metro areas for STEM professionals.

Pittsburgh’s primary industries are advanced manufacturing, technology, education, and healthcare. The largest employers are UPMC, PNC Financial Services Group, PPG Industries, and Highmark. Pittsburgh is also home to U.S. Steel, Carnegie Mellon University, and the Kraft Heinz Company. These employers provide well-paying jobs and stability for the city’s economy.

Given Pittsburgh’s affordability, rental demand, and stable economy, it’s not hard to see the investment opportunity. No wonder real estate investors are eager to purchase a Pittsburgh rental property.