You can generate some serious rental revenue and turn over a great profit by investing in Pennsylvania real estate, but you should know which cities provide the highest returns. The Mashvisor rental property calculator analyzes locations across the US housing market and evaluates how profitable they are. Let’s start out with some info on Pennsylvania real estate first, then we’ll talk cities and data.
What You Need to Know About the Pennsylvania Housing Market 2019
Before deciding to move forward on an investment location, you need to check out its real estate market trends. Trends can help you determine how to go about a real estate investment. And depending on your real estate strategy, certain trends could be better suited for you. Essentially, Pennsylvania could be the best state to invest in real estate if the factors that support your investment strategy are there.
Here are a couple of things to know about how the Pennsylvania real estate market is performing right now and if it’s the ideal place for your next investment property:
A Seller’s Market Is Pushing Home Values Up
As some parts of the US housing market are experiencing less pressure on property prices as inventory levels of housing stock are going back up, the same can’t be said about Pennsylvania real estate. According to Zillow, the Pennsylvania housing market is currently a seller’s one. The median Pennsylvania real estate value has increased by 3.3 percent since the past year.
Sellers do have the upper hand when it comes to negotiating deals for Pennsylvania real estate, but that doesn’t mean buying a house in Pennsylvania is impossible. In fact, according to Mashvisor, the median property price in Pennsylvania is currently $275,626 (price per square foot, $301). This is relatively affordable compared to the US median of $310,000. Ultimately, it’s an affordable seller’s market which can mean great opportunities for real estate investors.
Strong Rental Revenue
Pennsylvania rental properties generate good levels of income, and choosing the right investment property will allow real estate investors to make far more than the market average. Check out Mashvisor’s data for the Pennsylvania housing market 2019. These are key numbers any investor should know if he or she is looking for an advantage over the competition.
- Price to Rent Ratio: 16
- Average Days on Market: 93
- Monthly Traditional Rental Income: $1,405
- Monthly Airbnb Rental Income: $2,030
- Airbnb Occupancy Rate: 46%
Buyers can make profitable investments in the Pennsylvania real estate market by using key data to find the best investment properties for sale. This kind of real estate data will help you know what to expect so you know how to make the best moves in the housing market. US real estate investors can find key data for their rental property investments by signing up for Mashvisor. Start your 14-day free trial with Mashvisor now and subscribe to our services with a 20% discount after.
One of the Biggest US Economies
Being home to 44 out of 1000 of the biggest public and private companies in the US, Pennsylvania has definitely got a booming economy. It’s got a $793 billion economy making it the sixth biggest in the nation. It isn’t only employment that’s attractive about the Pennsylvania economy. It’s also home to a number of great schools like Swarthmore, Haverford, and the University of Pennsylvania. The city’s strong economy is forecast to bolster the housing market for years to come.
Airbnb Regulations Aren’t as Strict
There has been some news lately in Pennsylvania about some concerns regarding zoning and short term rentals. Some cases have been taken on by the courts on an individual basis. There was no clear course of action, so each municipality handled the cases differently. Some ruled against the short term rental owner, while others ruled for. This ambiguity made it clear that an official statement needed to be made. So what’s the latest news? Is Airbnb legal in Pennsylvania?
Yes, it still is. However, there’s a catch. The Pennsylvania Supreme Court unanimously decided that short term rentals in areas residentially zoned for “single housekeeping unit” are inconsistent with Pennsylvania legal precedent and governmental policy. This isn’t that big of an obstacle for real estate investors in Airbnb Pennsylvania. It’s just now very important for short term rental operators to pay attention to their local zoning ordinance. The language of this ordinance is very important here as a lot of the cases that went to court did so because of ambiguous writing; the lack of an explicit mention of short term rentals in an ordinance could also help property owners accused of zoning violations.
The Best Cities in Pennsylvania for Real Estate Investment
Now it’s time to get down to the main topic of this blog, which is the best cities to invest in real estate in Pennsylvania. Like the state-level data for Pennsylvania real estate, this city data is also provided by Mashvisor’s calculator. We will be listing the five best cities for each rental strategy, Airbnb and traditional. If you choose to invest in Pennsylvania real estate in one of the Airbnb markets mentioned, make sure you invest in the right zoning district to maintain a legal short term rental.
Let’s list the housing markets which perform best for Airbnb rentals first:
1) Monroeville- Allegheny County
- Median Property Price: $206,493
- Price per Square Foot: $107
- Average Days on Market: 84
- Monthly Airbnb Rental Income: $2,896
- Airbnb Cash on Cash Return: 10%
- Airbnb Occupancy Rate: 47%
2) Wellsboro- Tioga County
- Median Property Price: $224,092
- Price per Square Foot: $101
- Average Days on Market: 181
- Monthly Airbnb Rental Income: $2,490
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 46%
3) Pittsburgh- Allegheny County
- Median Property Price: $236,724
- Price per Square Foot: $94
- Average Days on Market: 57
- Monthly Airbnb Rental Income: $2,099
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 51%
4) York- York County
- Median Property Price: $189,210
- Price per Square Foot: $101
- Average Days on Market: 62
- Monthly Airbnb Rental Income: $1,980
- Airbnb Cash on Cash Return: 7%
- Airbnb Occupancy Rate: 60%
5) Bangor- Northampton County
- Median Property Price: $242,539
- Price per Square Foot: $117
- Average Days on Market: 57
- Monthly Airbnb Rental Income: $3,537
- Airbnb Cash on Cash Return: 12%
- Airbnb Occupancy Rate: 40%
Continuing our list with another five markets in the Pennsylvania real estate market, now focusing on traditional long term rentals:
6) Reading- Berks County
- Median Property Price: $157,404
- Price per Square Foot: $88
- Average Days on Market: 96
- Monthly Traditional Rental Income: $1,320
- Traditional Cash on Cash Return: 5%
7) Meadville- Crawford County
- Median Property Price: $211,241
- Price per Square Foot: $99
- Average Days on Market: 67
- Monthly Traditional Rental Income: $1,010
- Traditional Cash on Cash Return: 4%
8) Lords Valley- Wayne County
- Median Property Price: $227,400
- Price per Square Foot: $102
- Average Days on Market: 116
- Monthly Traditional Rental Income: $1,658
- Traditional Cash on Cash Return: 3%
9) Lackawaxen- Pike County
- Median Property Price: $252,278
- Price per Square Foot: $103
- Average Days on Market: 77
- Monthly Traditional Rental Income: $1,783
- Traditional Cash on Cash Return: 4%
10) Lake Ariel- Wayne County
- Median Property Price: $219,729
- Price per Square Foot: $106
- Average Days on Market: 88
- Monthly Traditional Rental Income: $1,582
- Traditional Cash on Cash Return: 3%
And that concludes our list. If you want to start investing in Pennsylvania real estate, we recommend you use the ultimate search tool- Mashvisor. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.