Why such high vacancy rates in Pittsburgh?

[Edita D.]

Hey guys! 

I am researching Pittsburgh's economy and housing situation to better understand where the region is headed.

I found out that Pittsburgh has high vacancy rates. I wonder why that is... Is it the oversupply of high-end apartments in Lawrenceville, East Liberty, etc that are adding to the vacant units?

Please, share your thoughts :)

[Anthony Angotti]

@Edita D.

Vacancy rates aren't too bad if you stick to the transit lines and aren't in the areas that are over-saturated with investors and rentals. 

You also have to get a good feel for actual rents, not just what you want to charge. Consider that the median household income for the city is in the mid $50,000 range. That would mean that the maximum rent the median person could afford city wide is, $1389. So the pool of people that can afford the 700/bedroom rents is a lot lower. 

That's not even factoring in the fact that most people in that household income range are buyers not renters. I'd say average household renter income is closer to $35-40K in decent areas making the rent for most households $972.22 - $1,111. 

Smaller than 3 beds you don't get people making that household income because they are usually individuals or roommate situations. 

Just like any place you need to consider the customer base.