EXCLUSIVE The ultra-livable river city where humble homes are rapidly doubling in price

Daily Mail​

26-04-2025

Pittsburgh might be known for its gritty industrial roots, but these days it's the housing market that's heating up - and a longtime real estate agent says longtime locals are feeling the burn.
For much of the 20th century, Pittsburgh's steel mills and factories powered the city's growth, shaping its blue-collar culture and diverse neighborhoods.
Even as heavy industry declined and the local economy shifted, Pittsburgh's reputation as 'The Steel City' continued to define its identity - until a wave of revitalization began transforming the landscape.
In an exclusive interview with the Daily Mail, John Marzullo - who's been selling homes across the city since 2013 - revealed what he calls a 'perfect storm' of low inventory, sky-high demand and pandemic-era interest rates that turbocharged prices across the region.
'Pittsburgh is still considered an 'affordable' market,' he said. 'But in my experience, the people that have lived here their entire lives are having a little sticker shock.'
Marzullo points to Oakmont - a small, tightly-knit suburb about 10 miles northeast of downtown that's currently prepping to host the U.S. Open - as a prime example.
'A four-bedroom, three-bath house that sold for $375,000 in 2013 would go for around $700,000 today,' he explained.
Marzullo believes the housing boom can't solely be blamed on the pandemic but says covid didn't help.
The Pittsburgh home above was sold in 2019 for $519,000 but in 2023 when it was sold again it went for a whopping $735,000
'You had a compression of inventory because there weren't places for Baby Boomers to go,' he said, noting a lack of one-floor homes for aging residents.
Combine that with interest rates in the two percent range, and the result is a frenzied game of house-swapping.
'People who never thought about selling were suddenly able to buy more square footage in the neighborhood they liked, and their payment would be the same,' he explained. 'It was simple economics - less supply, more demand.'
When it comes to the hottest ZIP codes in the metro, Marzullo didn't hesitate.
'The North Hills market, for sure,' he said. That includes Wexford, McCandless, and Ross Township - areas where homes are still drawing multiple offers and vanishing off the market in days.
But he also points to Oakmont's small-town charm as a key driver of its appeal.
'It has its own post office, police station, fire department, Chamber of Commerce - it's very community driven,' he noted. 'There's not a ton of places like that.'
Marzullo says buyers should also keep an eye on up-and-coming neighborhoods like the Strip District and the North Side, both of which are experiencing major revitalization.
The Strip District, formerly dominated by produce terminals and warehouses, has reinvented itself as one of Pittsburgh's most vibrant destinations.
Today, the neighborhood is bustling with farmers markets, trendy restaurants, and specialty shops, drawing crowds to spots like Enrico Biscotti and the Pennsylvania Macaroni Company.
Its blend of historic industrial spaces and sleek new developments has also attracted tech giants such as Apple, Facebook, and Argo AI.
These changes reflect a broader trend across Pittsburgh, which has quietly evolved over the past two decades from a post-industrial city with limited nightlife into a thriving cultural hotspot filled with acclaimed dining and boutique shopping options.
'Twenty years ago, your only options were Station Square and the South Side,' Marzullo said.
'Now places like Lawrenceville are totally different. When I first listed a house there, someone told me, 'Ten years ago, you could've bought the whole block for that price.'
The former industrial Strip District in the city has also see new construction with shops, restaurants and condos replacing shipping warehouses.
Pittsburgh's appeal is now nationwide. Marzullo says he's seeing 'investors, first-time buyers, and out-of-towners' lured in by the city's medical and education sectors.
Despite the buzz, Pittsburgh remains budget-friendly - at least on paper.
'Our median sale price in March was $219,950,' he said, citing fresh data from the West Penn Multi-List. 'That's still pretty affordable compared to the national numbers.'
But the city's rental market tells a different story. Over the past six years, Pittsburgh has seen the biggest rent hikes of any major U.S. city, with median rents rising nearly 48 percent since 2017, according to a report by Mansion Global and Zillow data.
The median monthly rent has climbed to about $1,550, up from just over $1,000 six years ago - far outpacing the national average rate of rent growth.
Population growth and a surge in jobs in the tech, healthcare, and education sectors have helped drive this demand, putting additional pressure on both rentals and homes for sale.
While new apartment buildings have been going up - especially in trendy spots like the Strip District and Lawrenceville - there still aren't enough units to meet the growing demand, so competition among renters is fierce.
Experts note that the rapid jump in rental prices is making it harder for residents to save for down payments on homes, fueling a cycle where more people are forced to rent longer and pushing rents even higher.
'You can expect multiple offers in the first few weeks of a listing,' Marzullo warned. 'But 2025 has actually been pretty good for buyers - we're seeing more negotiating and more seller concessions than in years past.'
For those thinking of buying in Pittsburgh then Marzullo has one key piece of advice: work with someone who knows the market.
'You need an agent who can get you in quickly and position your offer to look exciting to the seller,' he said.
'There are a lot of agents out there doing it on the side - but in this kind of market, strategy is everything.'
Meanwhile, the city is making moves of its own to address the affordability crunch. In April, Pittsburgh launched a new online development tracker that highlights projects receiving public financing through either the Urban Redevelopment Authority (URA) or the Housing Authority of the City of Pittsburgh.
According to the Pittsburgh Post-Gazette, the tool is meant to boost transparency by showing residents where taxpayer-supported developments are happening and what stage they're in - from planning to completion.
However, it only includes projects with public backing, omitting a large swath of private development.
Alongside that push for accountability, the city is also undergoing a significant downtown housing boom.
Over 1,300 new housing units are expected downtown, thanks to a wave of office-to-residential conversions in properties like the Gulf Tower and the former FHL Bank Building.
Roughly 25 percent of those new units are set aside as affordable housing for low-income families, according to Planetizen.
Mayor Ed Gainey has framed these efforts under his 'Keep Pittsburgh Home' platform, which includes expanding affordable housing, protecting renters, and creating more options for residents at risk of displacement.
The city is also implementing inclusionary zoning policies and offering incentives to developers who build income-restricted units.