Where Are the Best Places to Buy Investment Property in Pittsburgh?

Pittsburgh, PA, regarded as the “Steel City”, has an increasing opportunity market for property investment with its growing attractiveness to young adults. 

Though the city has gained its nickname from the over 300 steel-related businesses in the area, world-renowned companies like Amazon, Meta, and IAM robotics continue to contribute to the growing workforce. 

Despite Pittsburgh having slower employment growth compared to other metropolitan areas, its trend patterns have always had consistent levels of modest growth, even during the occurrence of economic events. This is partially due to the various pre-existing Fortune 500 companies that have been in Pittsburgh, such as PNC Financial Services, PPG Industries, The Kraft Heinz Corporation, WESCO International, and Dick’s Sporting Goods, that keep workforces stable. 

This makes Pittsburgh an unexpected underdog for investing because regardless of a declining population, the feasible income of the population is resilient. With Pittsburgh having more STEM (science, technology, engineering, and math) jobs than any other city with a declining population, as more businesses join the market, the people that come with them will need housing close to the things they care about. 

But with seemingly unpredicted market fluctuations of the past few years, how can people afford housing to fit their needs?

Coliving is a Great Option for Pittsburgh Investment Property Owners.

Coliving thrives as an innovative, new model for people looking to relocate, and for real estate investors’ striving portfolios. So, what is coliving?

Under coliving, housing productivity increases as the conversion to multiple “units” within a home foster a bigger market for professionals seeking housing close to their professions and other daily activities. 

When listing your property with Alcove, your investment property will be occupied by professionals who individually pay their share of rent and utilities. This creates more opportunities for them, and with Alcove’s revenue-sharing model, greater returns for your investment. 

Investing in rental real estate can net you a reliable cash flow in Pittsburgh. However, this cash flow has been lower than other markets due to low price-to-rent ratios (many not hitting the 1% rule).

Because rents in Pittsburgh have stayed relatively low compared to the price of the homes being sold, rental returns are not as high. However, with 50% of the households in Pittsburgh being occupied by renters, the difficult market for first-time home buyers can be an advantage for investors and their rentals. 

But where in Pittsburgh should you be buying to get the best match for coliving?

Honestly, we know that any of Pittsburgh’s 90 neighborhoods will expect well returns, but more precisely, we’ll share some areas that are great investments for the present and for the time to come. 

Based on our data and research, the following below are the best places to buy investment properties in the Pittsburgh area (in no particular order):

1. South Oakland

• Considered the cultural, academic and healthcare center of Pittsburgh

• Near two world-renowned museums

  • Carnegie Museums of Art and Natural History

2. Downtown

• Known as the “Central Business District”

  • Location of major banks and corporations: Key Bank, Huntington, BNY Mellon, PNC, and more

• Home to PPG Paints Arena hockey rink

• Market Square

  • A public plaza, recurring farmers' markets, and various events

3. Squirrel Hill

• Location of Carnegie Mellon University

• More relaxed and quiet neighborhood

• Commuter-friendly neighborhood to downtown

  • Murray Ave within Squirrel Hill provides bus lines to any university in Pittsburgh

4. Strip District

• An urban setting with a hipster feel

• Borders Allegheny River

• Over 90% of residers are renters

  • Allowing rent prices to be competitive 

These are just a few of the many neighborhoods within Pittsburgh that would have sustainable returns for investment properties. 

If you're curious to see how much you could earn, run your potential Pittsburgh property through our coliving rental estimator and see how much income you could receive in Pittsburgh by listing on Alcove one day.

If you're curious to learn more about why Alcove is a great option for investment property owners, read more here!