Only the NYC area outpaces Pittsburgh on rent vs buy increases

[szug-bot]

Originally Posted by Independentthinking83

I read an article from Chris Briem, UofPitt economist, that new housing construction permits were at its lowest levels in decades at the end of 2010s. Something like 120 permits for the entire metro for single family construction. Insanely low and that is what is making existing construction prices go through the roof. We have a lot of dilapidated structures needing 10s of thousands to even consider move in ready. A decent ranch house in a suburb with a good school district built in the 1960s is going for over 300K. It’s really insane.

Any good existing housing to buy or rent is gonna cost you an arm and a leg. High prices in Pittsburgh are due to lots of poor existing housing stock in undesirable areas and not population growth. The housing is so old that they just need to replace old with new and nobody is doing it.

Other cities that are growing have similar issues with existing construction. They can’t build new construction quickly enough to satisfy population growth demand (opposite of Pittsburgh’s problem).

really? i recently found a number of nice, small homes on the real estate website that begins w/ a "z" for under $175, one as low as $135.

all are in what looks like Penn Hills Twp. could be an aberration. or, the site is too eager to post them and those are market value, and not selling price - or something like that. a former r.e. agent i used (but did not buy) was not a fan of the "z" site, saying it was inaccurate.

[Blue Shift]

Originally Posted by PghPatriot

They're using Rent Estimates, not fair market rents.

Even if the absolute numbers they use aren't accurate, they should be acceptable to calculate a rate of change.

[minnomaboidenapolis]

Originally Posted by Independentthinking83

I think a lot of it has to do with a lack of move in ready housing and very little new construction. I think if you had more new construction going on it would ease the prices you are seeing. Anything that isn’t garbage goes for an arm and leg.

The city/region needs new housing IMO.

Is there really little new construction going on in Pittsburgh right now? I was there for much of the summer in 2019 and it seemed to me there was a lot going up in Shadyside, Lawrenceville and the Strip District.

https://www.penn23.com
https://2554smallman.com

Those are just some of the new developments set to finish in 2021. Although perhaps this is, in fact, a small number for a city of this size and with such an older housing stock? Are there more developments planned maybe?

[minnomaboidenapolis]

Originally Posted by Independentthinking83

I read an article from Chris Briem, UofPitt economist, that new housing construction permits were at its lowest levels in decades at the end of 2010s. Something like 120 permits for the entire metro for single family construction. Insanely low and that is what is making existing construction prices go through the roof. We have a lot of dilapidated structures needing 10s of thousands to even consider move in ready. A decent ranch house in a suburb with a good school district built in the 1960s is going for over 300K. It’s really insane.

Any good existing housing to buy or rent is gonna cost you an arm and a leg. High prices in Pittsburgh are due to lots of poor existing housing stock in undesirable areas and not population growth. The housing is so old that they just need to replace old with new and nobody is doing it.

Other cities that are growing have similar issues with existing construction. They can’t build new construction quickly enough to satisfy population growth demand (opposite of Pittsburgh’s problem).

Is the city offering any incentives for people to buy and renovate old properties? Like a tax abatement or reduction or something?