Are you a real estate investor seeking lucrative real estate properties? Maybe you should take a look at investing in Pittsburg real estate? When done diligently, a real estate property can be very lucrative! It can afford real estate investors an opportunity to earn a decent investment property income for many years to come, in addition to diversifying your investment portfolio.
Location is an important indicator of how well a real estate investment can perform. The location creates desirability, which results in higher demand and occupancy rates. All of this means the potential for a stronger return on investment.
Is Pittsburgh a good location for real estate investment? Yes! There are many good reasons why real estate investing is a good idea. The city is landlord-friendly, has a strong economy, and has a high demand for rental properties.
This article will cover the top reasons to buy an investment property in Pittsburgh, PA.
Why You Should Invest in Pittsburgh, Pennsylvania
Pennsylvania is a Landlord-friendly State
Now that you want to become a landlord, real estate investing in a landlord-friendly state should be a priority. You want to buy an investment in an area where the state’s legislation favors real estate investors and their interests.
First and foremost, there is no rent control law at both the state or local levels. This means that investors will be able to adjust the rent to any amount they like without any restrictions when investing in one of the many lovely neighborhoods in Pittsburgh. Secondly, there is no limit on the amount investors can charge in late rent fees to your tenants.
Keep in mind however that any adjustments to rent prices or fees should still be in line with real estate market averages otherwise, you might experience longer periods of rental vacancy.
What’s more, there are no landlord entry laws in Pittsburgh. Unlike some other states that require landlords to notify their tenants before entry, the same isn’t required of Pittsburgh landlords. This being said, real estate investors must still respect a tenant's right to quiet enjoyment of their space.
Pittsburgh has a Strong Local Economy
Currently, the unemployment rate stands at just 5 percent, better than other parts of Pennsylvania including Armstrong County and Fayette County.
Employment growth is happening broadly, with 70% of the major employers seeing job gains. CRBE, commercial real estate services, and investment firms listed it as the 3rd rental market in the U.S. for high-tech job growth.
Major employers in Pittsburgh include Google, Apple Inc., Amazon, Nokia, Autodesk, Uber, Facebook, Bosch, IBM, and Microsoft. And these are a few of the 1,600 technology firms generating about $20 billion in annual Pittsburgh payrolls.
This strong economy and possibility for jobs will attract more people to the area, which can mean a large prospective renter pool for property owners in the Pittsburgh's real estate market.
Real Estate Remains Affordable
There is a growing and ever-dynamic Pittsburgh real estate market. Yet, the Pittsburgh housing market across several neighborhoods remains affordable enough to attract potential investors. This affordability factor remains one of Pittsburgh's unique selling points when it comes to rental properties in the area.
The median home price across various Pittsburgh neighborhoods is around $165,000. This is well below the national average which means that if you invest wisely, you may be able to buy a couple of investment properties for the price of one house in a more expensive real estate market like LA or Seattle.
The Pittsburgh Housing Market is Large
The Pittsburgh real estate market has made a name for itself when it comes to education and job opportunity which allows it to consistently attract new residents. One of its more impressive features is that it’s home to a whopping 68 institutions of higher learning. These colleges and universities are each home to several thousand students, providing Pittsburgh property owners with a wide range of tenants, thus providing the area with a solid rental market.
The University of Pittsburgh is the biggest of them all with about 30,000 students. Another notable school is Pittsburgh State University. Its growth has occurred so rapidly that this thriving city has approved a new mixed-use development near Broadway and Fourth Streets to cater to them.
What’s more, as previously mentioned the strong job market and the economy will draw in young professionals and families looking for new opportunities and stability, all of whom have the potential of becoming renters. With a strong renters market, Pittsburgh offers investors an opportunity for steady cash flow.
Rental Property Values are on the Rise
The economic renaissance occurring in Pittsburgh is causing housing prices to rise slowly. Last year, the Pittsburgh median home price rose by about 6 percent. This year, properties are projected by experts to appreciate by up to 10 percent. This rise in investment property value coupled with affordable housing prices means that investors in Pittsburgh's real estate market should act quickly!
Buyers Don’t Have Much Competition
The Pittsburgh real estate market remains one of the least competitive in the country for home buyers. This means that with a good credit score and sufficient investment capital, investors may be able to snap up great real estate deals without engaging in any bidding wars.
The Tax Rate is Favorable
Pittsburgh, PA is located in Allegheny County. The effective property tax in the county is 2.16%. This is higher than the state’s average and with the country's average being 1.15%, Pittsburgh nearly doubles it. Yet, this remains to be a bargain in comparison to other cities like Philadelphia. Therefore, if you thinking of investing in a Pittsburgh rental, tax rates as in your favor.
The Bottom Line: Why Invest in Pittsburgh Real Estate
Pittsburgh offers many solid investment opportunities for potential real estate investors. There is less competition in the area, Pittsburgh rental property values are increasing, the local economy and housing market is doing great, and it’s landlord-friendly, among other things.
If you’re investing for the first time, hiring a professional management company can help you navigate the world of real estate investments. DeSantis Property Management will help you invest in the right unit and can oversee the management of your rental properties to help you generate a high ROI. Get in touch to learn more!
