What should come to mind when you think of real estate investment opportunities? Airbnb Pittsburgh. Note that it isn’t just the short term rental market which is booming here- the Pittsburgh housing market as a whole is currently a hot investment hub.
Now let’s jump into our first topic of discussion: Why Airbnb Pittsburgh investment properties make for smart real estate investments.
3 Reasons to Invest in Airbnb Pittsburgh
When it comes to choosing real estate markets for an Airbnb investment property, there are certain indicators that investors need to look out for. Most importantly are affordability, Airbnb local laws and regulations, as well as the market’s economy. Positive trends for these indicators point to profitable investment property.
When it comes to Pittsburgh investment properties, they are viewed as profitable for the following reasons:
1) It’s a Highly Affordable Real Estate Market
Pittsburgh is not only one of the more affordable cities in the Pennsylvania real estate market, but it’s also got some of the lowest property prices across the nation. Even with the introduction of new luxury buildings, office spaces for huge tech companies like Apple, and overall transformed neighborhoods, Pittsburgh investment properties are still positive cash flow investments thanks to their low cost.
If you’re wondering what Pittsburgh short term rentals are going for, the current median home price in the market is $228,149 – which is well below the nation’s median of $309,000. Real estate investors can be confident they’re getting a good real estate deal in this hot market.
It’s important to mention, however, that if you want to invest in Pittsburgh vacation rentals, you shouldn’t wait too long. The housing market is currently very hot and competition between property buyers is strong.
Lower interest rates have been motivating buyers to invest in real estate and the low supply of houses for sale is increasing the bidding wars not just in Pittsburgh, but in real estate markets across the country. So, if you’re interested in buying real estate here, we suggest you start your Airbnb investment property search with Mashvisor now!
2) There Are No Strict Airbnb Regulations in Pittsburgh
Is Airbnb legal in Pittsburgh? That’s the first question you should be asking anytime you plan to invest in Airbnb rental properties; this applies no matter the real estate market or location you choose. The recent surge in Airbnb rentals across the US housing market has left many local municipalities confused as to what the proper course of action is.
Some cities have really hit the Airbnb industry with a steel fist of strict Airbnb laws in efforts of restoring order in their communities. Meanwhile, others have given property owners the freedom to operate their properties as short term rentals. What’s the verdict on Airbnb Pittsburgh?
You can say it’s pretty investor-friendly. There are no specific regulations or an ordinance targeting non-owner occupied rentals, which is what your investment in Airbnb Pittsburgh would classify as if you don’t plan on living in it.
Sometimes when cities attempt to regulate short term rentals, they’ll ban investor-owned short term rentals and only allow rentals of primary residences. Luckily for Airbnb Pittsburgh investors, there’s no such talk.
The Pennsylvania Commonwealth Court, however, has held that a short term rental used for a residence differs from a hotel or bed and breakfast. As there are no clear regulations on short term rental operations in Pittsburgh, the Court has been handling any complications on a case-by-case basis.
Recently, the Court has reversed four trial court decisions and held in favor of property owners’ operation of short term rentals. This is because the local zoning ordinance did not specifically address short term rental use, so there weren’t any technical violations in these property owners running their single-family homes as short term rentals.
There are, however, some tax obligations and rental safety requirements set in place for the legal operation of a short term rental property in Pittsburgh. As an Airbnb real estate investor, we advise you to read more about these obligations to make sure you don’t get into any trouble with the law. Click here to read more about rental rules and regulations in Pittsburgh.
3) The Housing Market Is Supported by a Strong Economy
How much money is actually coming into the city from Airbnb Pittsburgh rentals? In 2018, Airbnb hosts in Allegheny County (where Pittsburgh is located) made some serious bank with the total Airbnb rental income exceeding $14.7 million.
With Airbnb growing more and more every day, we can expect this number to be even higher. Airbnb revenue, however, is not the only thing making Pittsburgh’s economy strong.
Pittsburgh also has got a pretty steady job market with the unemployment rate on the same scale as the rest of the state. A positive indicator for potential job growth in the future is the city reinventing itself as a high-tech hub.
A CBRE analysis of the fastest-growing markets for tech talent listed Pittsburgh as number 5 out of 23 cities realizing growth. Scoring a momentum gain of 10.4 in regards to tech talent in the job market, Pittsburgh is not far behind from the bigger markets like Los Angeles and Orange County, which had scores of 12.3 and 10.6, respectively.
Continuous positive prospects for Pittsburgh such as the ones mentioned continue to support a thriving housing market for the city, and real estate investors of both long term and short term rentals can expect high return investments.
Where to Invest for Profitable Airbnb Pittsburgh Properties
So we’ve been going on and on about why you should invest in Airbnb Pittsburgh, but how about some actual Airbnb data to back it up? Mashvisor’s investment property calculator can help with that. Our tools can analyze rental property performance in any US housing market of your choice, whether it be state, city, or neighborhood level. To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Today, we’ve used our calculator to locate the top-performing neighborhoods in the Pittsburgh real estate market for short term rentals. We’ll first list our data on the city level. Then, we’ll narrow it down so you know exactly where to start searching for a rental property for sale.
Pittsburgh Housing Market: City-Level Data
- Median Property Price: $228,149
- Price per Square Foot: $82
- For-Sale Listings: 314
- Average Days on Market: 68
- Monthly Airbnb Rental Income: $2,128
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 64%
Here’s a number of neighborhoods that, according to our data, are the best places for you to start your search for Airbnb Pittsburgh properties:
Central Business District
- Median Property Price: $69,800
- Monthly Airbnb Rental Income: $2,579
- Airbnb Cash on Cash Return: 22%
- Airbnb Occupancy Rate: 66%
- Median Property Price: $99,000
- Monthly Airbnb Rental Income: $3,321
- Airbnb Cash on Cash Return: 22%
- Airbnb Occupancy Rate: 66%
- Median Property Price: $56,000
- Monthly Airbnb Rental Income: $1,899
- Airbnb Cash on Cash Return: 18%
- Airbnb Occupancy Rate: 61%
- Median Property Price: $112,000
- Monthly Airbnb Rental Income: $2,743
- Airbnb Cash on Cash Return: 15%
- Airbnb Occupancy Rate: 67%
- Median Property Price: $100,000
- Monthly Airbnb Rental Income: $2,458
- Airbnb Cash on Cash Return: 14%
- Airbnb Occupancy Rate: 63%
Do you have a free Mashvisor account? Use our Property Finder to find lucrative Airbnb Pittsburgh investment properties that match your criteria in a matter of minutes!
Once you are ready to list your property on Airbnb, make sure to read our guide on how to become an Airbnb host.