Our most recent Insight highlighted some key characteristics of Pittsburgh's housing market - but below, we explore Homestead's housing market and continued growth, sharing a few of our neighborhood analysis and assessment metrics.
STRONG HOME VALUE GROWTH: In recent years, Homestead has witnessed an accelerated growth in home values, outpacing even some of the more established neighborhoods in Pittsburgh. Between 2010 and today, home values in Homestead have surged by an impressive 117%, indicating heightened demand. Median home value growth within Pittsburgh during the same period was 85%. Home value growth within the Homestead area indicates the neighborhood's ability to attract higher incomes and more qualified tenants.
GROWING WAGES: Homestead's economic growth has fueled rising wages. Median household income rose 9% between 2018 and 2021, fueling higher purchasing power among residents. This wage growth is a leading indicator of rent growth.
RISE IN HIGH-PAYING OCCUPATIONS: Since 2011, Homestead has witnessed growth in management, business, science, and arts employment. Employment within these professions has grown from 27% in 2011 to 37% in 2021. This growth in specialized, high-paying roles is often associated with higher educational attainment and skills and is a forward-looking indicator of future home value and rent growth. With more professionals in these professions settling in Homestead, property owners can demand higher rents.
GROWING YOUNGER DEMOGRAPHIC: Homestead has become a hotspot for young professionals. Between 2011 and 2021, the population of those aged 25-34 increased from 10% to over 14% of the population. The demographic growth has spurred the growth in urban amenities within the area - from cafes to co-working spaces and tech hubs, making Homestead a hotspot for social and professional networking. There is also a growing trend of renovating old buildings into establishments geared toward young professionals. For example, a 100 year old bank was recently converted into an Axe Throwing / Escape Room / Golf Simulator and a Pinball Speakeasy from a previous jail. This growth of urban amenities and regeneration projects points towards ongoing and, possibly, elevated demand for housing and rental inventory within the area.
INCREASED ADAPTIVE REUSE OF PROPERTIES: As a forward indicator of future home price appreciation and income growth within the area, Homestead has experienced an uptick in adaptive reuse development. Developers are increasingly investing capital in improving existing buildings, redeveloping these properties to obtain higher returns, and transforming older buildings to new uses. For instance, a previously abandoned high school was recently renovated into a 31-unit luxury apartment complex, featured on CNBC.
Homestead continues to grow, fueled by Pittsburgh and the surrounding area's economic growth. Homestead's growth is outpacing other Pittsburgh suburbs - attracting well-qualified tenants with high incomes.
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