Pittsburgh Rentals Not Rusty Yet
As a Rust Belt market, Pittsburgh has seen some lag in the development of its multifamily sector in recent decades but has experienced less oscillation than other markets lately. According to the latest Yardi Matrix Pittsburgh multifamily market report, last year was particularly strong for the metro, but moderation is once again the main narrative in Steel City. Pittsburgh rent growth remained flat on a trailing three-month basis as of August, while the U.S. rate saw mild improvement, at 0.2%. The metro’s average occupancy in stabilized properties was 95.5% as of July, 50 basis points higher than the national figure.
Only mining, logging and construction recorded job losses in the 12 months ending in June, with the employment market adding 33,100 positions. Unemployment in the metro is showing signs of improvement. Holding at 3.7% as of July, it was 10 basis points below the Pennsylvania rate and 20 basis points lower than the national figure. Work began on the $69 million final phase of the Hillman Library renovation, adding 500 construction and support jobs.
There was limited investment through the first eight months of 2023, as rising interest rates have limited investors’ interest across many markets, capping off sales at $51 million. With 2,485 units under construction, development is steady by the metro’s mildly oscillating standards.
Read the full Yardi Matrix Pittsburgh Multifamily Market Report: October 2023