Pittsburgh Housing Affordability: An Opportunity to Explore Rent vs. Buy

Are you searching for an affordable city to call home? Look no further than Pittsburgh. According to a recent study by financial analytics website WalletHub, Pittsburgh ranks second for housing affordability among large cities with a population exceeding 300,000, trailing only behind Detroit. In the general rankings, Pittsburgh claims the seventh spot, following cities like Montgomery, Flint, Toledo, Detroit, Akron, and Warren.

The study considered various metrics, such as median house price and median annual income, maintenance affordability, homeowner's insurance costs, cost of living, cost per square foot, real estate tax rate, rent-to-price ratio, median home price appreciation, quarterly active listings per capita, and vacancy rate. The data used were collected from trusted sources, including the U.S. Census Bureau, the National Association of Realtors, the Council for Community and Economic Research, and the Insurance Information Institute.

Affordability in Pittsburgh: Pittsburgh's affordability is evident in its housing market. The majority of houses in Pittsburgh are priced at $363,000 or less, with an average cost of around $235,000, according to NeighborhoodScout. These prices present an excellent opportunity for prospective homebuyers who can afford a down payment.

However, the homeownership rate in Pittsburgh stands at just 44.4%. This trend can be partially attributed to the fact that over half of the homes in the market were built in 1939 or earlier, as reported by 2019 data from NeighborhoodScout. The limited availability of more modern homes presents challenges for standard homebuyers, particularly when compared to cities like New York and Boston.

Pittsburgh Rental Market: In addition to its housing market, Pittsburgh's rental market strikes a balance between affordability and competitive rates. The average rent in the Pittsburgh area is $1,427, regardless of the number of bedrooms. One-bedroom apartments average around $1,027 per month, while two-bedroom units average $1,276. This places Pittsburgh as more expensive than surrounding areas but less expensive than many larger cities.

Rent or Buy Considerations: If you find yourself at the crossroads of the rent-or-buy decision or are uncertain about the best path forward, consulting with a financial advisor as well as a realtor can provide invaluable guidance. A realtor will analyze market conditions and a financial advisor will assess your personal finances to help you make an informed choice. They will shed light on whether renting or buying aligns with your long-term goals and financial well-being.

Pittsburgh's housing market offers affordability and opportunities for prospective homebuyers, despite the challenges posed by low housing inventory and rising mortgage interest rates. With a historically low homeownership rate and limited availability of newer homes, careful consideration is necessary for those looking to buy. The rental market, on the other hand, strikes a balance between affordability and competitive rates.

To navigate Pittsburgh's housing landscape effectively, seek guidance from a financial advisor who can analyze the market conditions and your personal financial situation as well as a local realtor (like myself). By weighing the options of renting versus buying, you can make an informed decision that aligns with your goals and sets you on a path to long-term financial success.