Pittsburgh was once the industrial heart of American steelworks but, after years of offshoring, it started to slip into decay. Fortunately, that downturn looks to have met its end. As thousands of millennials move into the city, the local real estate market is booming back to pre-2000 levels. If this trend continues, 2023 could become the most successful year in Pittsburgh real estate in more than a decade.
Thanks to new industries popping up throughout the region and housing prices that are generally lower than the rest of the nation, Pittsburgh is undergoing a population boom. Reed Pirain explores why this boom is happening and what it could mean for current homeowners and Pittsburgh immigrants looking for a rental or new home.
Why is Pittsburgh Suddenly Growing?
Over the last decade, Pittsburgh has transformed itself from a coal-ladened steelworks town into something of a tech capital. While Silicon Valley still rules supreme over hardware, Pittsburgh has established itself as the robotics capital of the United States. This is largely due to the presence of Carnegie Mellon University, which is one of the top robotics schools in the world.
But Pittsburgh’s tech industry is not just relegated to robots. The city is also home to a number of startups that are making waves in the software world. In addition to its burgeoning tech industry, Pittsburgh has also become a hub for healthcare and education. The University of Pittsburgh Medical Center is one of the largest employers in the city and the University of Pittsburgh is a top research institution. These two industries have helped to offset the decline of manufacturing in Pittsburgh and have given the city a more well-rounded economy.
How Economic Growth is Affecting Pittsburgh Real Estate
To put it simply, thousands of hopeful millennials are flocking to the city to find affordable homes and jobs of the future. After a couple of decades of decay, the median listing price for a home in Pittsburgh fell well below the national average, costing nearly $100,000 less than what you’d find in Cleveland, St. Louis, or any other city of comparable size.
Even after a year of rapidly rising housing prices, Pittsburgh remains one of the most affordable areas to purchase a home. Yet the sudden influx of residents has meant most have had to rent rather than buy.
With so much competition, the real estate market looks set to grow and appreciate in value over the next few months and into 2023. Paired with the recently approved Oakland Plan, Pittsburgh is also set to start developing new homes, helping to create a surge in real estate investment.
The Bottom Line
Pittsburgh is one of the hottest real estate markets right now. As thousands of young people flock to the city for better opportunities, competition is growing, and homes are quickly selling throughout the region. So, if you’re thinking of buying or selling a home in Pittsburgh, now is the time to do so. Prices will continue to rise as the city’s population and economy continue to grow.