Buy or Rent a Home in Pittsburgh Prices
Pittsburgh is a medium-sized city with a population of approximately 300,000 and an average home price of approximately $382,000.
Auckland and the US city of Pittsburgh are at opposite ends of the affordable housing spectrum, but the former “Steel City” faces challenges despite being voted one of the best US cities to live in.
Demographia’s latest international report on housing affordability found that prices in Pittsburgh, Pennsylvania were less than three times the
median household income.
The annual report examined 92 cities in Australia, Canada, Hong Kong, Ireland, New Zealand, Singapore, UK, and the US and assessed their affordability based on the median multiplier, which is the median home price divided by the median gross household income.
Prices in excess of three times the regional median income were considered prohibitive, but Pittsburgh’s median multiplier was 2, making it the cheapest city in the US, where the median multiplier was 5, and internationally .
Auckland was the eighth least affordable city in the rankings with an average multiplier of 11.2, although the city’s property prices had subsequently fallen.
Pittsburgh with 2 residents 37 million for the region and about 300,000 for the city itself at the 2020 census had an average home price in July of just over US$235,000 (NZ$382,000) according to Zillow, a property website similar to Trade Me.
While prices rose 6.5% through July, the median remained well below the US average of nearly $356,000.
Mortgages work differently in the US, with 30-year and 15-year fixed-rate mortgages being popular. These interest rates are 5.55% and 4.85%, while the interest rate for a typical adjustable rate mortgage was 4.36%.
New Zealand’s two-year fixed rates currently range from 5.29% to 5.45% and five-year fixed rates from 5.69% to 6.09%.
Although Pittsburgh does not tax capital gains on real estate, owners pay a 4% real estate transfer tax on the sale. Buyer and seller are jointly responsible, but it is negotiable and seller usually pay.
Still, about half of Pittsburgh’s population rents rather than owns, and the average monthly rent for a three-bedroom home was $1,600 in August, according to rental website Zumper. up to 14% and 11% at $1,340 and $1,550, respectively.
In August, 1,123 apartments were advertised for rent, despite tenant representatives saying the city needs more affordable rents.
In New Zealand, Trade Me estimated the national average rent at $570 a week in June, up 5% from the same period last year. Listings increased, and as of Monday, 9,543 rental properties nationwide were listed on the site.
The cost of rent represented 22% of median household income in New Zealand in the June quarter, according to the latest housing affordability figures from CoreLogic.
Some reasons for the cheapest prices in Pittsburgh are cheap. The city’s economy suffered from the decline of the US steel industry, and its population shrank significantly.
This reduced demand for homes and has helped keep prices lower. Since the 1990s, the city had become a hub for the healthcare, education, and technology industries. Today it houses the headquarters of eight Fortune 500 companies and the offices of 1,600 technology companies, including Google,
Facebook and Amazon.
But a recent analysis by the Bureau of Labor Statistics of the Pittsburgh Tribune-Review showed that the city’s economic recovery after the pandemic was slower than many other metropolitan areas.
He suggested that the region’s larger-than-average population may have led to more retirements and that substantial population growth is needed to address the problem.
Nonetheless, business information website MarketWatch recently named Pittsburgh one of the top 20 cities in America, in part for the galleries of four professional sports teams.
Pittsburgh real estate agent Theresa Ward said in a social media post that the city is also teeming with great schools and colleges, surrounded by beautiful mountains and farmland, and investing and making efforts in infrastructure such as public transportation would revitalize these different communities.