2024
2024
hannacre.com
hannacre.com
Multifamily Market Report
Multifamily Market Report
RENTAL RATES The robust demand has translated into strong YOY rent growth. Gains for 2024 were over 3%, eclipsing peer cities of Cleveland and Cincinnati, as well as the national average. It is extremely rare for Pittsburgh to outshine the national benchmark. The cool down in rents being felt nationally is the direct result of overbuilding in the major markets like Nashville and Austin. That Pittsburgh has not oversaturated itself means that owners should anticipate steady gains to continue at a healthy clip through 2025.
BOLD PREDICITIONS FOR 2025 • Investment Levels Surpass 2024 Levels • CBD vacancies compress by 3% • YOY Rent Growth Will Surpass National Average in 2025
DAILY RENT TRACKER
INVESTMENT SALES After a slow 2023, investors began opening the pocketbooks in 2024. Over $315 million was spent in last year, nearly five times the levels of investment in 2023. Total investment figures can be somewhat deceiving in a market like Pittsburgh, which typically sees major money being spent every other year. Last year’s total investment figures were driven by two main acquisitions: the 442-unit District and the 319-unit Ascent. Both sales showcase the strengths of Pittsburgh’s multifamily market. The aptly named District is a 2021 arrival in the cities trendiest part of town: The Strip District. This project sold to a national investor based out of New York for over $275,000/unit with a price tag of over $129 million. The Ascent is located in Wexford, a growing suburban node in the North Hills. The property features modern amenities and design, was built in 2015, and was purchased by a national investor for $79 million at nearly #250,000/unit. Both deals showcase how the region is fully capable of attracting major outside investors, but also noteworthy is the number of transactions because it showcases a rebound in local purchasing. CoStar shows that over 130 multifamily properties sold in 2024, a 25% increase in what was seen the prior year.
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