Pittsburgh area building too many higher end apartments (renter, neighborhood)

[eschaton]

Originally Posted by PghYinzer

Wage tax growth is not always tied to population growth. If a building has 100 people that make 30k a year and it switches to a building that has 100 people that make 100k a year, the wage tax revenue will go up dramatically.

Also, when it comes to housing, number of households is more important than raw population size. If a working-class family of four is displaced and three single young adults move into the city, there has been a net loss of one person, but the demand for additional units of housing has gone up by two.

[tyovan4]

Originally Posted by PghYinzer

Wage tax growth is not always tied to population growth. If a building has 100 people that make 30k a year and it switches to a building that has 100 people that make 100k a year, the wage tax revenue will go up dramatically.

Gotcha.

Sorry, I interpreted your previous post differently. I thought you were referring to the growth of the city itself, not of the growth of the intake from wage taxes.

Sorry about that misunderstanding.

[stburr91]

Originally Posted by sky329

Has Luxury Apartment Boom Reached Its End In Pittsburgh? « CBS Pittsburgh

Seems like the market is getting over saturated.. I know a few landlords who are having trouble filling nice units at good prices, and I see for rent signs up forever.. Times are changing...

Yes, I saw this coming years ago, the job growth came to a screeching halt, all the while there were a large number of new units coming online annually.

While we still don't seem to have solid data to work with, there is no doubt that many landlords are dropping rents, and still getting fewer calls from prospective tenants.

I know it's tempting to see dropping rents as a good thing, but property values, and therefore tax assessments are directly related to rents for investment property. With so much of the tax burden placed on property owners, it's imperative that we have a healthy rental market, or the vacancy problems, and tax revenue problems for many municipalities will become even worse.

[sealie]

I haven't seen job growth at a screeching halt, at least not the job growth of the kind of jobs that people in this kind of housing tend to work at.
https://www.pghcitypaper.com/Blogh/a...-to-job-growth
I don't deny the low-middle class with limited skills are seeing limited demand for their services, but thet're not the target market for these apartments.

[xdv8]

Originally Posted by stburr91

Yes, I saw this coming years ago, the job growth came to a screeching halt, all the while there were a large number of new units coming online annually.

While we still don't seem to have solid data to work with, there is no doubt that many landlords are dropping rents, and still getting fewer calls from prospective tenants.

I know it's tempting to see dropping rents as a good thing, but property values, and therefore tax assessments are directly related to rents for investment property. With so much of the tax burden placed on property owners, it's imperative that we have a healthy rental market, or the vacancy problems, and tax revenue problems for many municipalities will become even worse.

So you think tax assessments would be lowered in the East End where the existing rental market would face downward pressure? When do you see that happening, especially when they are already artificially low?

The only thing that will happen in healthy areas will be that multi family homes converted back to single family giving that market some relief in addition to slight rental decrease for those that don't sell.

[SteelCityRising]

Originally Posted by Lost_In_Translation

Should help some posters here with their rent woes.

If you're referencing me, then you should know my rent went UP again this year. I guess while the city at-large is seeing rental occupancy cool off, Polish Hill still has a rental shortage because not enough developers are building dense infill here despite the apparently strong demand for Polish Hill, hence the rising rents.

[PghYinzer]

Originally Posted by SteelCityRising

If you're referencing me, then you should know my rent went UP again this year. I guess while the city at-large is seeing rental occupancy cool off, Polish Hill still has a rental shortage because not enough developers are building dense infill here despite the apparently strong demand for Polish Hill, hence the rising rents.

Well Polish Hill is right next door to "Robotics Row" so this isn't going to stop any time soon....




There is a 1 bedroom (pet friendly, heat and water included, yard and patio) in Brookline for $675 right now on Craiglist. Even with the added expense of a bus pass, at $775 you would most likely be less than what you have now. If you sign a 13 month lease you get a month free. It looks pretty spacious and even has a fireplace.

[xdv8]

Or even a two bedroom in unaffordable gentrified East Liberty for $725

http://www.zillow.com/homedetails/2105912839_zpid/

(These aren't hard to find)

[PreservationPioneer]

I noticed there have been many affordable rentals posted on Craigslist in the past week or two. That's reassuring. I may need to rent for a year while I finish my North Side house. The money I make from my McKeesport property will help me finish the renovations. I'm thinking about what section of the city I'd like to live in for a year.

[RogersParkTransplant]

Originally Posted by PreservationPioneer

I noticed there have been many affordable rentals posted on Craigslist in the past week or two. That's reassuring. I may need to rent for a year while I finish my North Side house. The money I make from my McKeesport property will help me finish the renovations. I'm thinking about what section of the city I'd like to live in for a year.

Keep an eye on Spring Garden and the adjacent neighborhoods -- there are still some rentals to be had for super cheap prices, and I think you would enjoy seeing the changes in East Deutschtown up close. (I would include you too SCR, but something tells me you're going to hang on in Polish Hill for a bit...)