If you’re looking to expand your portfolio and grow your real estate investing business, take a look at the Steel City. Pittsburgh is an up and coming market for real estate investors and starting in 2020 it’s on our watchlist for cities with high inventory and demand. But before we explain what the opportunities are, here’s how we came up with the data points to determine this area:
It all starts with education and the workforce. Pittsburgh is the home to CMU which is famous for its technology and engineering programs which are producing an abundance of highly sought-after tech employees. Next door you have the University of Pittsburgh which is world-renowned for both their business and medical programs. This creates a highly skilled job force with a need for housing.
In 2018 the city reached 495 tech companies within its boundaries, including Google, and it is still growing. Along with the boom of white-collar jobs, blue-collar jobs are being created as the demand for services and retail increases. The balance of white and blue-collar workers provides investors with opportunities to cater to both the higher-end buyer’s market as well as the renter’s market. The city has plenty of old houses to pick from, so un-renovated inventory is available for either strategy.
You’ll see once-neglected warehouses and unkept swaths of land on the rivers are now filled with shopping, office buildings, high-end condos, and entertainment. This is happening all over the city, making it appealing to outsiders looking for modern conveniences. Both established white-collar workers and younger folks just starting out are both moving into Pittsburg. With that comes the demand for housing.
With roughly 3.5%* of the Pittsburgh metro area homes going into foreclosure each year and a lot of demand, there are opportunities to flip or rent properties. You also have old neighborhoods that are becoming more expensive and will soon be unaffordable by the previous owners and aging populations. This means a steady increase in motivated sellers. So where are they?
The Top Neighborhoods for Real Estate Investing in Pittsburgh
- Squirrel Hill is rich in real estate but the population is getting old. It is in a prime location near the universities and downtown and has direct lines to entertainment. There are restaurants and parks making it an ideal place to live. Because the population is increasing in age, they’re moving out of their duplexes and single-family homes with front, back and side yards. These are prime for rehabbing or converting into condos if the zoning allows.
- Shadyside is right down the road from Squirrel Hill and is a larger and very in-demand spot. There are restaurants, plenty of shops and older homes that are primed for flipping. Because of the easy access to almost all business districts, universities, and the trendy area, there will always be a demand for housing. Because it is a heavier populous with limited space, it’s a great spot to buy with the intent to either sell or rent.
- Lawrenceville is an interesting option. It contains direct routes to downtown, hospitals and has a classic neighborhood charm. With an overflow of older homes that also have yards, easy access to corporate offices and entertainment, it is perfect to flip for younger families, couples, and 30-somethings who are ready to buy a home.
- Mount Washington and the surrounding area – If you want stunning views and an upscale flip, this is where you’ll want to look for investment properties. Even though space is limited, it is ripe with properties that can be rehabbed or converted to multiple units. The appeal of high-end restaurants, exquisite views, and unique architecture make it appealing to well-to-do buyers. Because properties are getting more expensive, you may need to do some digging to find a deal with high-profit margins, but it will be well worth the payday.
- The Northside used to have a bad reputation, but when you peel back the layers you’ll see an underlying culture appealing to younger generations. There are museums, unique cafes, and restaurants as well as access to the sports stadiums. It’s a quick trip to get downtown, making it perfect for young professionals who have money for entertainment but not necessarily a pricy renovated home. Rentals could be a great move in this neighborhood.
- Greenfield is the final neighborhood to check out. There are great schools that can attract families, access to shopping, restaurants, and entertainment. It’s also an easy trip to get downtown and other commercial areas for work. The houses are old and the cost of living is rising which means you’ll be able to find some great deals from people looking to sell and head for the suburbs. Properties here are appealing to college students who want to rent, recent grads, young professionals, and families who are looking for a first or second home.
If you are looking to expand your portfolio and market, Pittsburgh, Pennsylvania is a real estate investing up-and-comer. There are top-notch schools, an influx of professionals looking for housing, and a bustling entertainment scene complete with music, sports, and fine dining. Because it is a real estate investing market on the rise, now is the time to begin looking because it will hit other investors’ radars fast. Need capital to get started investing in the Steel City? Learn more about hard money loans in Pennsylvania and how they could be a great option for funding your next project.