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Market Report

Pittsburgh Multifamily Market

3Q 2023

Top-Tier Units Face Housing Market Headwinds;
Low Construction Benefits Suburban Metrics

Home affordability creates Class A competition. At the end of the second quarter, the typical monthly payment on a median priced home stayed below the mean effective Class A rent in Pittsburgh. As for-sale home inventory in the metro increases, renters in the Class A segment may opt to purchase a house, creating headwinds for top-tier units. In June, Pittsburgh already had one of the top-10 highest Class A vacancy rates among major U.S. markets. The segment could face further rate adjustments, potentially increasing concession usage as supply-side competition grows. Conversely, Class C properties noted a vacancy rate 190 basis points below upper-tier counterparts at 4.7 percent. Lower-tier apartments could continue to see tight vacancy as renters seek out budget options amid elevated rents in recent years.

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