Pittsburgh real estate has been on top of the game for a long time. Not too long ago, it was named as the fifth most resilient city in the world. If you’re interested in renting traditionally or through Airbnb, Pittsburgh real estate is a hot choice.
Traditional Pittsburgh Real Estate
Traditional Pittsburgh real estate is a smart investment choice for these three reasons: jobs, colleges and universities, and livability.
Pittsburgh is nicknamed the Steel City. As the name implies, the city is a massive steel producer. Steel isn’t the only thing the ‘Burgh produces. Large amounts of oil, natural gas, and glass are also produced in Pittsburgh.
There’s so much more to Pittsburgh than being a bigtime production hub in terms of jobs. The city has been transforming into a tech center during the past decade. Over an astonishing 1,600 tech firms are in the city, including world-renowned firms like Google, Apple, and Uber. These firms add in a whopping $20.7 billion into the local economy. Other sectors of the job market are involved in healthcare, nuclear engineering, robotics, education, and film. The city is also headquarters to major financial institutions.
Pittsburgh’s job market is among the strongest out there. It was among the few to withstand the recession. The unemployment rate in the city is also below the national average, hovering around 5.2%. This incredible job market strength, tagged with affordability, low crime rate, and vibrant culture, makes Pittsburgh the most livable city in the country, according to the Economist and Forbes. Pittsburgh’s livability draws many to live in the city, meaning more potential long-term tenants to rent to.
To add on to the great traditional Pittsburgh real estate opportunity, the city is among the top college towns in the country. With over 68 colleges and universities, including the University of Pittsburgh and Carnegie Mellon University, you will find many college students in your tenant pool.
Related: The Guide to Renting to College Students
Top Neighborhoods for Traditional Pittsburgh Real Estate
Here are the top four neighborhoods for traditional real estate in Pittsburgh. Please note that the cash on cash returns and cap rates in this bog are merely averages. A property in these locations will likely score higher in these respects.
1.) Herrs Island
- Median Property Price: $374,500
- Traditional Rental Income: $4,533
- Traditional CoC: 3.24%
- Traditional Cap rate: 7.18%
- Median Property Price: $309,905
- Traditional Rental Income: $1,772
- Traditional CoC: 2.29%
- Traditional Cap rate: 6.87%
3.) Squirrel Hill North
- Median Property Price: $295,000
- Traditional Rental Income: $1,884
- Traditional CoC: 1.27%
- Traditional Cap rate: 5.44%
4.) Homewood South
- Median Property Price: $75,000
- Traditional Rental Income: $1,020
- Traditional CoC: 2.7%
- Traditional Cap rate: 8.16%
Airbnb Pittsburgh Real Estate
Not only is Pittsburgh well-known for its tremendous livability, it is also a popular tourist destination, a great reason to invest in Pittsburgh Airbnb. Being a center for sports, arts, and culture attracts many tourists to visit the ‘Burgh.
Pittsburgh hosts teams from different sports that many people come to watch. Whether it’s the Pittsburgh Steelers football club or the Pittsburgh Penguins hockey team, fans from around the country will travel to the city to watch the teams play. This is a lucrative opportunity to invest in Airbnb Pittsburgh real estate.
Pittsburgh has long had a history with arts and culture. The city is known for jazz, blues, and rock music. Pittsburgh is not only a destination for music lovers. The city is home to many art museums. Famous history museums, including the fourth ranked natural history museum in the country, the Carnegie Museum of Natural History, draw many visitors to the city. Safe to say, many different tourists will be available to be you as Airbnb guests.
On the legal spectrum, Pittsburgh has not caused particular issues because of Airbnb. Aside from a recent 7% hotel tax put in place, not much has been different in terms of Airbnb legality. But still, make sure you are on the law’s side when hosting through Airbnb. You don’t want to be hit with fees or any other consequences.
Related: Cities with the Least Airbnb Legal Issues
Top Neighborhoods for Airbnb Pittsburgh Real Estate
As you will see, there are many Pittsburgh neighborhoods fit for Airbnb. The median prices are relatively than the national average too, so take full advantage of this while you can!
1.) Highland Park
- Median Property Price: $377,000
- Airbnb Rental Income: $2,510
- Airbnb CoC: 3.64%
- Airbnb Cap rate: 8%
- Airbnb Occupancy Rate: 36%
2.) Southside Flats
- Median Property Price: $272,400
- Airbnb Rental Income: $2,822
- Airbnb CoC: 8.18%
- Airbnb Cap rate: 13.18%
- Airbnb Occupancy Rate: 52%
3.) Middle Hill
- Median Property Price: $107,500
- Airbnb Rental Income: $1,931
- Airbnb CoC: 5.71%
- Airbnb Cap rate: 10.78%
- Airbnb Occupancy Rate: 46%
4.) Bedford Dwellings
- Median Property Price: $75,000
- Airbnb Rental Income: $1,966
- Airbnb CoC: 9.82%
- Airbnb Cap rate: 15.73%
- Airbnb Occupancy Rate: 47%
- Median Property Price: $284,500
- Airbnb Rental Income: $1,478
- Airbnb CoC: 2.45%
- Airbnb Cap rate: 7.12%
- Airbnb Occupancy Rate: 44%
6.) East Liberty
- Median Property Price: $309,000
- Airbnb Rental Income: $1,475
- Airbnb CoC: 1.49%
- Airbnb Cap rate: 5.91%
- Airbnb Occupancy Rate: 44%
Related: 4 Don’ts for Airbnb Occupancy Rates
Pittsburgh real estate has been consistently profitable and reliable for years, and this trend does not seem to be going anywhere anytime soon. With relatively low median prices, awesome livability, highly functional job market, and exciting tourist destinations, Pittsburgh is a brilliant choice for real estate investment, traditional or Airbnb.
Pittsburgh is one of the many, many cities we analyze and blog about. If you’re interested in reading about any other cities (and real estate tips), read the Mashvisor blog. If you’re interested in searching for an investment property in U.S. cities, begin your search at Mashvisor.