2020 will be a successful year for the US housing market. But, naturally, a real estate investor won’t find success in every real estate market in the US. To help steer you in the right direction, we want to reveal a hidden gem for investing: the Pittsburgh real estate market 2020.
In this blog, you’ll learn answers to the following questions:
- How will the Pittsburgh real estate market 2020 perform?
- What is the Pittsburgh real estate market outlook for 2020?
- Where should you invest in Pittsburgh real estate in 2020?
Related: 10 Best Cities to Invest in Pennsylvania Real Estate
Pittsburgh Real Estate Market: Mashvisor’s Investment Data
You’ll quickly understand why we have dubbed the Pittsburgh real estate market a “hidden gem” once you take a closer look at the housing market data. Where can you get access to such data? Right here, with Mashvisor! Mashvisor’s real estate tools provide the most accurate data for any real estate market in the US. To learn more about how Mashvisor’s tools can help you, click here!
- Median Property Price: $273,524
- Price per Square Foot: $119
- Price-to-Rent Ratio: 19
- Traditional Rental Income: $1,227
- Traditional Cap Rate / Cash on Cash Return: 2.3%
- Airbnb Rental Income: $2,212
- Airbnb Cap Rate / Cash on Cash Return: 5.4%
- Airbnb Occupancy Rate: 56.3%
Related: The Best Real Estate Investment Calculator of 2020
Pittsburgh Real Estate Market Trends for 2020
Even after looking at the numbers, you may still be wondering: Why should you be investing in Pittsburgh real estate in 2020? The answer lies in the following five Pittsburgh real estate market trends:
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Pittsburgh House Prices Will Be Very Affordable
It’s no surprise that the US housing market is getting more expensive. US property prices will increase by 2.2% in 2020, according to Zillow. Therefore, finding an affordable market is more of an advantage than ever. Above all, rental properties in Pittsburgh are inexpensive. According to Mashvisor’s data, the median price of a Pittsburgh real estate investment is $273,524. This median property price is significantly lower than the national median of $299,400. With affordable property prices, Pittsburgh real estate investors will be able to easily purchase investment properties in 2020.
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Traditional and Airbnb Rental Properties Will Be Lucrative
The Pittsburgh real estate market will also be profitable in 2020. This is the case for both traditional and Airbnb Pittsburgh rental properties. According to Mashvisor, both the average traditional rental income and return on investment (ROI) in Pittsburgh are high. The Pittsburgh housing market is also lucrative for Airbnb, with a high average Airbnb rental income and ROI. It’s vital to keep in mind that these figures are only averages. So, you can find Pittsburgh investment properties in 2020 that will be even more profitable. Just take a look at these high cap rate properties for sale!
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Pittsburgh Real Estate Will Have a High Appreciation Rate
Not only will the Pittsburgh PA real estate market be very profitable in 2020, but it will also have a high appreciation rate. Pittsburgh has had a strong history of real estate appreciation. In the last 10 years, Pittsburgh real estate appreciated by 58.32%. According to NeighborhoodScout, this places Pittsburgh in the top 10% for real estate appreciation. The Pittsburgh real estate market 2019 also had a high rate of 2.81%. Meanwhile, 2020 will continue to see this positive trend. According to Zillow, properties in the Pittsburgh housing market will appreciate by 3.8% in 2020. So it’s best to take advantage of the cheap property prices now so you can enjoy appreciation during the year.
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Airbnb Will Be Neither Legal Nor Illegal
We’ve discussed the profitability of Airbnb Pittsburgh. But, is it legal? Currently, Airbnb is neither legal nor illegal in Pittsburgh. There are no official Pittsburgh Airbnb laws for short-term rentals. As a result, there are no restrictions on non-owner occupied rentals in the city. However, there are safety and tax requirements for Airbnb Pittsburgh. You can learn about the safety requirements here. As for taxes, Airbnb Pittsburgh short-term rentals are subject to:
- 6% Pennsylvania Hotel Occupancy Tax
- 7% Allegheny County Hotel Room Rental Tax
Most importantly, there are no expected Airbnb legal developments in Pittsburgh for 2020.
Related: 20 Cities With No Airbnb Legal Issues in 2020
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Rental Property Demand Will Be High
Above all, the best Pittsburgh real estate investing strategy will be to buy a rental property in 2020. This is because local rental properties will be in high demand. Over 52% of the city’s residents live in Pittsburgh rental properties and with a price to rent ratio of 19 and rising property prices, demand is only expected to rise next year. Overall, multifamily properties will be in high demand, according to the PwC. Even as a seller’s market, Pittsburgh will be an excellent investment location for rental property investors.
Best Neighborhoods in Pittsburgh for Traditional Rental Properties
So, where should you invest in Pittsburgh real estate?
There are many neighborhoods in the Pittsburgh real estate market. But which areas are the best? According to Mashvisor, these are the best neighborhoods for traditional Pittsburgh houses for sale:
Upper Hill
- Median Property Price: $141,627
- Price per Square Foot: $112
- Price-to-Rent Ratio: 7
- Traditional Rental Income: $1,700
- Traditional Cap Rate / Cash on Cash Return: 7.4%
West Oakland
- Median Property Price: $110,000
- Price-to-Rent Ratio: 6
- Traditional Rental Income: $1,620
- Traditional Cap Rate / Cash on Cash Return: 7.4%
Arlington
- Median Property Price: $86,475
- Price per Square Foot: $39
- Price-to-Rent Ratio: 7
- Traditional Rental Income: $1,075
- Traditional Cap Rate / Cash on Cash Return: 6.6%
Larimer
- Median Property Price: $142,450
- Price-to-Rent Ratio: 8
- Traditional Rental Income: $1,550
- Traditional Cap Rate / Cash on Cash Return: 5.9%
Best Neighborhoods in Pittsburgh for Airbnb Rental Properties
What about Airbnb Pittsburgh? Where should you buy Pittsburgh short-term rentals? Again, Mashvisor is here with the answer. The best neighborhoods in Pittsburgh for Airbnb are:
West Oakland
- Median Property Price: $110,000
- Price-to-Rent Ratio: 6
- Airbnb Rental Income: $4,192
- Airbnb Cap Rate / Cash on Cash Return: 26.7%
- Airbnb Occupancy Rate: 55.5%
Arlington
- Median Property Price: $86,475
- Price per Square Foot: $39
- Price-to-Rent Ratio: 7
- Airbnb Rental Income: $3,216
- Airbnb Cap Rate / Cash on Cash Return: 21.1%
- Airbnb Occupancy Rate: 55.6%
Middle Hill
- Median Property Price: $56,000
- Price-to-Rent Ratio: 6
- Airbnb Rental Income: $1,969
- Airbnb Cap Rate / Cash on Cash Return: 19.7%
- Airbnb Occupancy Rate: 55.2%
Sheraden
- Median Property Price: $82,239
- Price per Square Foot: $49
- Price-to-Rent Ratio: 7
- Airbnb Rental Income: $1,161
- Airbnb Cap Rate / Cash on Cash Return: 15.9%
- Airbnb Occupancy Rate: 59.6%
The Pittsburgh real estate market will be a great market in 2020. Want to start searching for Pittsburgh houses for sale? CLICK HERE to start your 14-day FREE trial with Mashvisor!