PITTSBURGH — Demand for apartments in the Pittsburgh market shows no signs of letting up, either from the wave of new developments or disruptions caused by the pandemic.
That seems to be the core message of the Marketbeat Pittsburgh report for the third quarter of 2021, issued by Cushman & Wakefield Grant Street Associates.
According to the report, apartment rents have increased more than 5% in the last year, reaching an effective average rent of $1,152 per month in a regional market with an overall vacancy rate of less than 5%.
Some suburban, non-core submarkets have had remarkable recoveries: Washington County, with its huge exposure to the consolidating energy sector, has seen fantastic rent growth over the last year, as has Beaver and Westmoreland Counties, driven by robust logistics employment opportunities.
There continues to be plenty of development activity for new apartments, particularly in the greater downtown area including the central business district and all the neighborhoods that surround it, such as the Strip District, Lawrenceville and the South Side.
The report projects that major companies returning to their offices post-covid will help to drive apartment absorption in the city into 2022, further. noting how new development is helping to push rents higher.