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Market Report

Pittsburgh Multifamily Market Report

2Q 2023

As Market Undergoes Transition, Suburbs Gain
Slight Edge, Reflected in Class B Performance

Less development helps buttress suburban rentals. Pittsburgh’s multifamily sector is undergoing a slight retreat, after pandemic-delayed housing decisions led to a brief surge in leasing activity in 2021 and early 2022. Since near-term renter demand has softened, operations have been most resilient in the suburbs. Ending March at 5.0 percent, suburban apartment vacancy is well below the long-term average of 7.1 percent, supporting above-market rent growth. A key factor influencing this recent performance is minimal new supply. Fewer than 200 units were delivered outside of the central business district in 2022. Although more rentals will open in suburban settings this year, they are predominantly in North and West Pittsburgh where new economic drivers are forming. Here, industrial operations, such as Shell Polymers’ new Monaca plant in Potter Township, are expected to support job creation at both the facility and from support firms, supplementing local housing needs. 
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