Growing Tech and Medical Industries Fueling Multifamily Development in Pittsburgh
Pittsburgh’s job growth in the technology, construction and Eds & Meds sectors is driving demand for new multifamily product. In 2018, 930 units were delivered while 1,041 units were absorbed in the urban market, showing continued strong demand. Permits and construction starts show no sign of slowing down for new development in the pipeline.
From a pricing perspective, overall asking rents grew 7.2%, year-over-year, driven by a declining vacancy rate (second lowest, year-over-year, decline in large U.S. Markets in Q1 2019) along with the addition of newer product. Pittsburgh’s multifamily market attracted a new pool of outside investors who are seeking higher yields in secondary and tertiary markets.