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Market Report

Pittsburgh Multifamily Investment Forecast

2022 Outlook

Recovery Continues as Economy Diversifies;
Growing Tech Sector Provides Brighter Outlook

Three years of limited construction aids vacancy. Annual delivery volume will cross the 1,500-unit mark for the first time since 2018, after a lull in construction produced an average of just 750 rentals finalized over the past three years. The new supply in 2022 is located primarily in the central business district. Job gains in technology-based fields like autonomous driving, robotics and education had been supporting demand for luxury rentals in central submarkets until lockdowns began. The return to in-person work will help drive occupancy in these central areas back toward pre-pandemic levels as new completions and existing Class A rentals are leased up. Meanwhile, the suburbs have seen vacancy rates plummet as limited deliveries and steady demand have pushed down on availability. Toward the end of last year suburban vacancy stood at 2 percent, the lowest rate in at least two decades. Tight conditions here will persist as developers focus on urban corridors despite strong household formation figures in the suburbs.
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