Why You Need To Start Flipping Houses In PA

November 17, 2023

Produced by:
Elizabeth Welgemoed

Elizabeth is a Senior Content Marketing Manager with over 10 years of experience in the field. Having authored or edited 1,000+ online articles, she is a prolific content producer with a focus on the real estate vertical.

Why Your Next Real Estate Investment Should Be In The Keystone State

The Pennsylvania real estate market is a proven landlord’s paradise, where the buy and hold strategy has performed well over the past few years and demand for rental property is high. However, this is a space that also holds a lot of promise for both buyers and fix and flip investors, which is why we’re shining a spotlight on this area and its opportunities.

In PA, the real estate market has remained consistent throughout the typical up-and-down cycle of the industry and has performed well historically. If you had bought a property in this state for $200,000 right before the year 2000, it would be worth around $400,000 today based on regional averages. This is why New Silver is welcoming Pennsylvania real estate investors, and why you should consider PA for your next investment.

The Pennsylvania Real Estate Market Outlook

Pennsylvania home values have increased by 12% and are predicted to increase even more in years to come. The median property prices in PA have reached $321,200, with the average property spending just over 80 days listed on the market prior to selling. What makes the local real estate market even more unique is that unlike the vast majority of real estate markets across the US, there is a larger amount of real estate inventory available to purchase.

Home to one of the most populous real estate markets in the country, PA boasts a strong local economy, a growing student population, and labor market – a prime indicator that the space is ripe for real estate investment. These factors combined make up the ideal recipe for long-term success and provides assurance to investors that their investments will do well for years to come.

Where In PA To Buy

Pittsburgh, also known as the steel city, has one of the largest real estate markets in the state, with the metro area being home to more than 2 million people. In Pittsburgh, both rental income and ROI remain particularly high, with short-term rentals becoming increasingly popular through services like Airbnb as there is no limitation on short-term rents. Apart from higher incomes for investors, properties in this area also have a higher appreciation rate. Over the past 10 years, real estate in this city has appreciated at a whopping rate of 58.32%.

Investing in rental real estate continues to be a sound strategy throughout most PA markets, as demand increases with more individuals from Gen Z seeking housing for the first time, and millennials upgrading to bigger, secondary family homes. Within the limits of Pittsburgh however,  there are several neighborhoods that show significant promise for investors.

Lawrenceville, South Side, Friendship and Brookline are the locations that are highlighted as some of the best performing in real estate. This is due to the major benefits available to both investors and buyers or renters in these markets – the properties are more affordable, there are more work opportunities fueled by a growing tech sector and the presence of desirable amenities.

Outside of Pittsburgh city limits, the five best county areas in terms of long-term real estate investments are Reading, Meadville, Lords Valley, Lackawaxen and Lake Arial. All of these Pennsylvania markets boast average rental incomes for landlords of well over $1000 a month, and a big pool of tenants to choose from.

Final Thoughts

The Pennsylvania real estate market will remain hot for some time, with home values increasing steadily and the demand for real estate progressing simultaneously. As the market shows no signs of slowing down, investors can be assured that PA is a great place to invest and we recognize the value of wanting to move quickly. New Silver is happy to serve the vibrant real estate investor community in PA by providing fast, convenient online hard money loans at competitive rates.

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