Pittsburgh has become an attractive city for property investors in recent years due to its affordable housing prices and high rental yields. The key opportunities lie in neighborhoods close to major employers and universities. With median home prices under $200k and gross rental yields over 10% in some areas, Pittsburgh offers very favorable investment fundamentals compared to other major US cities.
Lawrenceville remains top choice for Pittsburgh property investors
Located close to downtown and Carnegie Mellon University, Lawrenceville continues to be the number one investment location choice in Pittsburgh. Median sales prices here have increased over 40% since 2013 due to strong demand from owner-occupiers and investors, but still remain affordable at around $300k. High quality Victorian homes can achieve rents of over $2,000 per month, translating to gross yields of over 8%.
Growth potential in East Liberty and Squirrel Hill North
Other popular neighborhoods include East Liberty and Squirrel Hill North, situated adjacent to universities and hospitals. Both areas are undergoing extensive revitalization and benefitting from improved transportation links and influx of young professionals. With relatively lower price points and attractive demographics, these neighborhoods represent good long term growth potential.
Consider lower cost markets with stability like Carrick
For investors looking for higher cash flow, lower priced neighborhoods like Carrick also present opportunities. Although capital growth may be slower, Carrick remains very affordable with median home prices around $70k. Rents here average close to $1,000 per month, allowing cash flow positive investments.
In summary, Pittsburgh offers property investors affordable valuations, attractive rental yields, revitalization prospects in key neighborhoods as well as areas catering to stability-focused investors. These factors contribute to a favorable outlook for Pittsburgh real estate investment in 2020 and beyond.