According to Kevin Keane, executive vice president of Lincoln Property Co., there has been an incredible change when it comes to Pittsburgh apartments. In looking back, approximately 600 to 1,000 units were developed a year going back to around 2003. However, there are now upwards of 2,300 units being built every year.
The numbers clearly show an incredible 10-year boom pertaining to apartments in Pittsburgh. In fact, at the Pittsburgh Business Times convention, the level at which apartment development has become a driving real estate trend was one of the primary points of discussion.
Keane is not the only professional in the real estate world that is taking notice to apartment development in Pittsburgh. Compared to when Lincoln Property was first built in the late 1990s and initially called the Lincoln at North Shore, the apartment industry has continued to boom. Overall, people believed the market would follow national trends and stay strong with only slight risk of overbuilding.
As Keane’s numbers show, this is exactly what happened. Even from five years ago, multifamily housing in Pittsburgh and throughout the greater downtown area has experienced a dramatic change. Literally, the market exploded. Experts estimated that in looking at other major metropolitan areas as far as a multifamily boom, Pittsburgh is as much as 10 years behind. However, given that larger cities tend to be more urban oriented, it makes sense.
From a bank’s perspective, apartments make a sound investment. In fact, in virtually every city of the country, financing needed for multifamily properties is readily available, which includes the city of Pittsburgh. Historically, multifamily dwellings perform far better in cycles than out of cycles, making them a safer investment.
As part of the recent convention, the appeal of apartments to various demographic groups was also discussed. Specifically, it was noted that young professionals are highly drawn to multifamily properties, along with middle-aged people and empty-nesters. In other words, there is significant diversity when it comes to the appeal of apartment living.
Keane went on to say that there is probably greater risk of overbuilding in the suburbs than there is in the downtown area of Pittsburgh. Overall, there are tremendous benefits that come from living in multifamily properties and with the economy in Pittsburgh growing stronger, more people enjoy having quick and easy access to and from work.
Reasons for the Apartment Boom
While accessibility is among the top reasons for the apartment boom, there are many others as indicated by Witf Inspired.
- Financial – Typically, rent is more affordable than paying a mortgage. Because of the recent recession, people are tighter with savings so they want a home that is affordable but without compromising on benefits.
- Maintenance Free – Apartments also provide maintenance-free living. Landlords of multifamily properties are responsible for maintaining the grounds, take care of repairs, and handling a wide range of maintenance and repair issues.
- Amenities – Typically, apartments come with amenities such as fitness center, swimming pool, tennis court, basketball court, laundry facilities, and more. For more luxurious properties, door service, day spa, on-site salon, concierge service, parking, and other upper scale amenities are provided.