Pittsburgh, Philadelphia both land on national list for offering affordable homeownership

Both Pittsburgh and Philadelphia are consistently lauded for being affordable cities for first-time and millennial buyers.

Not surprisingly, data from Redfin recently showed that both cities are in the top ten in the U.S. for highest homeownership rates among low-income families. Pittsburgh has the second highest homeownership rate for low-income families in the country. In the Steel City, 55.8 percent of homeowners have income which is in the bottom 25th percentile. This has increased 2 percent from 2012. Pittsburgh continues to have a high homeownership rate, at 74.3 percent, and the median sales price in the area for this past January was just under $150,000. With more than half of owners’ incomes at $41,000, or the bottom 25 percent, buying a home in Pittsburgh is still a viable option. Just Minneapolis is ahead of Pittsburgh in homeownership among lower-income families at 57.7 percent.

Across the state, Philadelphia was tenth on the list for low-income homeownership. In the City of Brotherly Love, the homeownership rate for households with incomes in the bottom 25 percent, is 52.6 percent, a decrease of 0.6 percent from 2012. Philadelphia was the only city in the top ten to see a decrease from 2012. In Philadelphia, the median sales price for January 2019 was $190,000. Meanwhile, the 25 percent or lower income level is about $51,000. The homeownership rate in the city is 72.8 percent.

However, will this trend continue in Pennsylvania? A recent realtor.com® report found that both new and acting listings in Pittsburgh are down 4 percent year-to-year, while the median listing price is up 3 percent. Additionally, homes are spending four days less on the market compared to last year. In the Philadelphia area, active listings are down 1 percent and new listings are down 10 percent year-to-year. The median listing price is up 9 percent, and home are on the market for four days less year-over-year.