As New Rental Units Hit the Market, Rent Growth Slows in Pittsburgh
A large supply of new apartments have hit the market in Pittsburgh recently, and landlords of older rental housing stock are finding it harder to compete, responding by slowing rent increases and reinvesting in properties.
"In a report issued Monday, the CBRE real estate firm found Pittsburgh is in the midst of a supply surge, with about 4,600 units being built within the last three years — more than in the previous 15 years combined," reports Mark Belko. "Another 3,479 units are set to be completed in the next two years."
All those new rental units are slowing rent growth in the city, and could be helping balance the entire market to the benefit of renters. Belko quotes directly from the report: "Quite simply, rent growth slowed in 2017 due to increased supply. Rent corrections are to be expected in 2018, but this will help support a healthy long-term outlook for the urban multifamily market."
Belko also speaks with real estate companies and landlords that own the older housing stock in question to corroborate the report's findings.