2024
2024
hannacre.com
hannacre.com
Multifamily Market Report
Multifamily Market Report
UNITS UNDER CONSTRUCTION 2,379
2024 ANNUAL INVESTMENT $316M
YOY INVESTMENT GROWTH 406.5%
VACANCY RATE 6.10%
AVG UNIT RENT $1,362
AVG. RENT/SF $1.60
2024 MULTIFAMILY MARKET REPORT: OVERVIEW
Pittsburgh’s multifamily market remains on fantastic footing heading at the start of 2025. Over the past twelve months, the market saw vacancies contract and rent growth eclipse both nearby markets and the national benchmark. Investors are noticing the region’s strength and trading activity picked up noticeably from 2023. DEMAND Multifamily demand remains extraordinarily healthy and has vacancies hovering around 6% at the start of 2025, a noteworthy figure for multiple reasons. At a national level, occupancies are softening because of over construction in boomtown markets like Austin and Nashville. That Pittsburgh remains well under the national average demonstrates that local developers continue timing their new arrivals in an intelligent manner. But even better news for the region is that developers were not inactive at all during the past year. Close to 1,600 units arrived in 2024. While not a record setting year, it was an above average expansion for the region. Additionally, this followed on the heavy deliveries of 2023, which saw 1,700 units come online.
That the market was able to absorb these units effortlessly indicates that Pittsburgh is likely ready and capable of handling new supply. With over 2,300 units under way within the market, it is likely that vacancies soften over the course of 2025. However, given the strength of demand, the new arrivals will be unlikely to make new waves. All of Pittsburgh’s submarkets are posting healthy levels of occupancy. Even the region that stands out (Downtown) is fuller than the data recognizes. Much of the new supply to arrive over 2024 was in this submarket, and these new projects are all close to full occupancy. Additionally, multiple major projects are experiencing major renovations, spiking the vacancy.
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