Are you looking to invest in Pittsburg real estate? When done diligently, a real estate investment can be very lucrative! It can afford you an opportunity to earn a decent income for many years to come, in addition to diversifying your investment portfolio.
Location is an important indicator of how well a rental 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 for that. The city is landlord-friendly, has a strong economy, and has a high demand for rentals.
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, choosing a landlord-friendly state should be a priority. You want to invest in an area where the state’s legislation favors you and your investment’s interests.
First and foremost, there is no rent control law at both the state and local levels. This means that you’ll be able to adjust the rent to any amount you like without any restrictions. Secondly, there is no limit on the amount you can charge in late fees to your tenants.
Keep in mind however that any adjustments to rent or fees should still be in line with market averages otherwise you might experience longer periods of property 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, you 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, a commercial real estate services, and investment firm listed it as the 3rd 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, this can mean a large prospective renter pool for property owners.
Real Estate Remains Affordable
Pittsburgh is a growing and ever-dynamic real estate market. Yet, it remains affordable enough to attract potential real estate investors. This affordability factor remains one of Pittsburgh’s unique selling points when it comes to real estate.
The median home price 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 properties for the price of one home in a more expensive real estate market like LA or Seattle.
The Rental Market is Large
This historic city 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 property owners with a wide range of renters.
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 that 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.
Property Values are on the Rise
The economic renaissance occurring in Pittsburgh is causing housing prices to rise slowly. Last year, median home prices rose by about 6 percent. This year, homes are projected by experts to appreciate by up to 10 percent. This rise in property values coupled with affordable prices means that investors should act quickly!
Buyers Don’t Have Much Competition
The city’s 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, you may be able to snap up great 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 national average being 1.15%, Pittsburgh nearly doubles it. Yet, this remains to be a bargain in comparison to other cities like Philadelphia.
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, property values are increasing, the local economy is doing great, and it’s landlord-friendly, among other things.
If you’re investing for the first time, hiring a professional property management company can help you navigate the world of real estate investments. DeSantis Property Management will help you invest in the right property and can oversee the management of your rentals to help you generate a high ROI. Get in touch to learn more!