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Old 08-16-2016, 08:54 AM
 
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Quote:
Originally Posted by selltheburgh View Post
Most of the medical residents that I've rented to make about 45k, but they have deferred payments and they know they are going to have a very good income in the future, so some live off of student loans on top of their income. They are the best tenants because they are never home, don't complain about much, and keep their apartments pretty nice. Fellows earn more. Researchers, programmers, nurses, etc are all in the demographic that can afford the nice new apartments.
Resident salaries have increased. No UPMC resident makes less than 55k now.
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Old 08-16-2016, 09:25 AM
 
Location: Pittsburgh, PA
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Originally Posted by gladhands View Post
THIS.

I know we all hem and haw about the shortage of high paying jobs, but there will never be a shortage of residents and fellows making 55-65k (many of whom are married/cohabitating) who don't want to live more than 15 minutes away from their hospitals. There's a market for these apartments.
Yes, and based on my interactions with them they want new apartments with central air, updated appliance, and off-street parking. They also know their earning potential is great so they feel comfortable spending a little more.
One of my neighbors was complaining because he used to rent his house to residents (he is an MD so he can advertise to them directly, I guess) but now they want to live in the new buildings.
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Old 08-16-2016, 09:33 AM
 
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Originally Posted by charisb View Post
Yes, and based on my interactions with them they want new apartments with central air, updated appliance, and off-street parking. They also know their earning potential is great so they feel comfortable spending a little more.
One of my neighbors was complaining because he used to rent his house to residents (he is an MD so he can advertise to them directly, I guess) but now they want to live in the new buildings.
This, combined with the fact that residents and fellows don't actually make more money in cities with higher COL. They're comparing 1500/mo Pittsburgh apartments with 1500/mo apts in other cities, and see how much more they're getting here. It's worth it. No one with MD behind their name wants to live in crappy student apartments.
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Old 08-16-2016, 11:07 AM
gg gg started this thread
 
Location: Pittsburgh
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Originally Posted by eschaton View Post
1. That article is about national trends....
Correct. Is Pittsburgh following a national trend in building too many high end apartments? Have you ever walked down Penn Ave in East Liberty as of late? Where are all the people coming from that will live in all those semi-ugly buildings? People keep only posting the cheaper units, but if you actually go places like Bakery Square there is only one unit available at the cheap price and it goes up from there. There are units at $2,800 to over $3,200 a month for rent. Lets stop pretending the units are $1,285 a month, that is a small portion of the units that are build. Transit Station units for a 2 bedroom are going to be over $3,000 a month. This is Pittsburgh, not NYC. Good luck to them. I think we will see a lot of empty units. Probably not as empty as the retail space is, that will probably stay empty, but I think they are shooting too high.

Time will tell, but there sure seem to be a lot of units trying to get around the $3,000 a month range.
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Old 08-16-2016, 12:03 PM
 
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Okay, I just saw that Eastside Bond has some $2500 1BR units. That's laughable. I can find a nice apartment in a good neighborhood anywhere outside of SF for that kind of money.
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Old 08-16-2016, 12:03 PM
 
Location: Pittsburgh
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Originally Posted by gg View Post
Correct. Is Pittsburgh following a national trend in building too many high end apartments? Have you ever walked down Penn Ave in East Liberty as of late? Where are all the people coming from that will live in all those semi-ugly buildings? People keep only posting the cheaper units, but if you actually go places like Bakery Square there is only one unit available at the cheap price and it goes up from there. There are units at $2,800 to over $3,200 a month for rent. Lets stop pretending the units are $1,285 a month, that is a small portion of the units that are build. Transit Station units for a 2 bedroom are going to be over $3,000 a month. This is Pittsburgh, not NYC. Good luck to them. I think we will see a lot of empty units. Probably not as empty as the retail space is, that will probably stay empty, but I think they are shooting too high.

Time will tell, but there sure seem to be a lot of units trying to get around the $3,000 a month range.
east side bond actually has a lot of units for rent or soon to be coming on the market between 3500-4450 per month. That is really pushing the envelope for Pittsburgh.

it would take two individuals with roughly 90-100k salaries each to comfortably pay those rates and maintain a upper middle class lifestyle and still put away a little in savings each month.

that being said. I highly doubt it will affect much of the current day rental stock. Even if they have to lower the price of the ultra high end units a bit, its still leaps and bounds higher that the older apartment stock prices.

the 750-950 per month 1 bedroom places and the 1100-1300 2 bedroom places will not be getting lowered IMO. I only see these places ticking upward a bit or staying flat for the next few years. If we see a national min wage of $15 an hour implemented, I see the rental rates of all low and mid level housing increasing, the high end should remain the same as min wage hikes really affect the low income and lower middle class the most. I guess time will tell.
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Old 08-16-2016, 12:18 PM
gg gg started this thread
 
Location: Pittsburgh
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Originally Posted by jea6321 View Post
east side bond actually has a lot of units for rent or soon to be coming on the market between 3500-4450 per month. That is really pushing the envelope for Pittsburgh.
Geez. With all the crime in that region, it is hard to believe people will pay that much money. The area is still very sketchy. Will be interesting to see if all these newer high end places will find tenants. I sort of doubt it, but if they do, I will be impressed. Wages in our region are pretty low for the most part.
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Old 08-16-2016, 12:32 PM
 
Location: Pittsburgh
1,491 posts, read 1,447,129 times
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Quote:
Originally Posted by gg View Post
Geez. With all the crime in that region, it is hard to believe people will pay that much money. The area is still very sketchy. Will be interesting to see if all these newer high end places will find tenants. I sort of doubt it, but if they do, I will be impressed. Wages in our region are pretty low for the most part.
there is definitely demand, the developers didnt just throw the building up and place rental prices without first doing extensive market studies of the probability of renting the units. I dont think its going to be at 100% occupancy right away, but heck, people have been living in that building for about 9 months now while its completely under construction still.

they have not finished the highest end units ( 4k+) so it will be interesting to see if or how quickly those rent. that is basically starting a completely new segment of pittsburgh apartment pricing. I was shocked at how quickly morrow park was filling up the 3k a month units, so you never know.
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Old 08-16-2016, 12:44 PM
 
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Originally Posted by jea6321 View Post
it would take two individuals with roughly 90-100k salaries each to comfortably pay those rates and maintain a upper middle class lifestyle and still put away a little in savings each month
Unfortunately many of the people I know living in similiar type apartments don't factor in that latter part into their budgets when signing such leases.
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Old 08-16-2016, 12:45 PM
gg gg started this thread
 
Location: Pittsburgh
26,137 posts, read 25,783,846 times
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Originally Posted by jea6321 View Post
there is definitely demand, the developers didnt just throw the building up and place rental prices without first doing extensive market studies of the probability of renting the units.
If you look at the article I posted, it will show you that there are NO "definite" when it comes to real estate because if there was there wouldn't be a national trend to have too many high end apartments. I don't feel they will fill up as planned, but time will tell. Morrow Park is one thing because they were early in the game, but you keep building them and at some point there will be a glut. Should be interesting to watch it play out.

Oh, I do want to make it clear I am really hoping they all fill up. I think that would be amazing and very exciting, but I guess I just can't imagine it happening.
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