C O M P R E H E N S I V E H O U S I N G M A R K E T A N A L Y S I S Pittsburgh, Pennsylvania U.S. Department of Housing and Urban Development Office of Policy Development and Research As of August 1, 2011 Summary Economy 3-year forecast period is expected to total 8,950 new homes, a portion of Economic conditions strengthened which will be met by the 850 homes in the Pittsburgh HMA during the Housing Market Area currently under construction (see past year. Nonfarm payrolls increased Table 1). In addition, some of the by 15,000 jobs, or 1.4 percent, to 60,400 other vacant units in the HMA 1,133,000 jobs during the 12 months may re-enter the market and satisfy ending July 2011, with the most signif - some of the demand. icant growth occurring in three sectors: education and health services; logging, TrumbullOhioPennsylvania Mercer Venango ClarioFnorestJefferson msioinnianlg a, nadn db ucsoinnestsrsu scetriovnic;e as.n Nd opnrofafersm- RReentnalt maalr kMeta cornkdeititons in the HMA Mahoning Lawrence payroll jobs are expected to increase are currently soft, with a 7.4-percent Butler Colum- Armstrong by an average of 1.4 percent a year vacancy rate. The overbuilding of biana Beaver Indiana HaBnrcooockke Ohio Allegheny Westmoreland Cambria dbyu reixnpga tnhsei o3n-y iena rt hfoe reedcuascta tpieornio adn,d l ed r2e0n0t0asl, ucnoiutsp ldeudr iwnigt hth me oedarelrya-tteo -hmoiuds e- Washington health services sector. hold growth since 2000, led to softer Ohio Marshall Greene PenFnasyyeltvteania Somerset Sales Market cdoenmdaintido nins. tDheu rHinMg Ath eis f eoxrepceacstet dp etori od, Wetzel Monongalia Garrett West Virginia Preston Maryland total approximately 2,050 new rental Sales market conditions in the HMA The Pittsburgh Housing Market Area units, part of which will be met by the are currently soft. During the 12 months (HMA), located in southwestern 950 rental units under construction ending June 2011, new and existing Pennsylvania, is coterminous with the (see Table 1). home sales declined by 20 percent, to Pittsburgh Metropolitan Statistical Area. 22,700 homes. Demand during the For purposes of this analysis, the HMA is divided into three submarkets: the Central Pittsburgh submarket, compris- ing Allegheny County, including the principal city of Pittsburgh; the Southern Pittsburgh submarket, comprising Fay- ette, Washington, and Westmoreland Market Details Counties; and the Northern Pittsburgh Economic Conditions .....................................................................2 submarket, comprising Armstrong, Beaver, and Butler Counties. Population and Households ...........................................................5 Housing Market Trends ..................................................................7 Data Profiles .................................................................................15 Summary Continued 2 Table 1. Housing Demand in the Pittsburgh HMA, 3-Year Forecast, August 1, 2011 to August 1, 2014 Pittsburgh Central Pittsburgh Southern Pittsburgh Northern Pittsburgh HMA Submarket Submarket Submarket Sales Rental Sales Rental Sales Rental Sales Rental Units Units Units Units Units Units Units Units Total Demand 8,950 2,050 3,850 1,500 2,800 0 2,300 550 Under S Construction 850 950 300 700 300 50 250 200 I S Notes: Total demand represents estimated production necessary to achieve a balanced market at the end of the forecast Y L period. Units under construction as of August 1, 2011. A portion of the estimated 60,400 other vacant units in the HMA will A likely satisfy some of the forecast demand. N A Source: Estimates by analyst T E K R A M Economic Conditions G N I S U O T H he Pittsburgh HMA is the jobs, with nearly 80 percent of E V economic anchor of northern those losses concentrated in the I S Appalachia and the Ohio River manufacturing, wholesale and retail N E Valley. During the 12 months ending trade, and professional and business H E July 2011, the economy of the HMA services sectors. Declines in nonfarm R P strengthened, adding 15,000 nonfarm payrolls abated when the economy M O payroll jobs, an increase of 1.4 percent, added a total of 3,000 jobs during C to 1,133,000 jobs (see Table 2). This 2010, and the wholesale and retail • A gain is a significant improvement from trade and professional and business P the economic decline that occurred services sectors improved. During , h during 2009, when the HMA lost the 12 months ending July 2011, the g r more than 28,000 nonfarm payroll average unemployment rate declined u b to 7.4 percent from the 8-percent rate s t Table 2. 12-Month Average Nonfarm Payroll Jobs in the Pittsburgh HMA, t recorded for the previous 12 months. i by Sector P See Figure 1 for trends in the labor 12 Months 12 Months Ending Ending Percent force, resident employment, and Change July 2010 July 2011 average unemployment rate in the Total Nonfarm Payroll Jobs 1,118,000 1,133,000 1.4 HMA from 2000 through 2010. Goods Producing 142,800 145,900 2.1 Mining, Logging, & Construction 55,800 57,200 2.5 Despite the improvement in the Manufacturing 87,000 88,650 1.9 economy of the HMA during the Service Providing 975,100 987,400 1.3 Wholesale & Retail Trade 171,300 173,500 1.3 12 months ending July 2011, the Transportation & Utilities 41,500 42,300 1.9 information and government sectors Information 18,950 18,050 – 4.8 had nonfarm payroll losses of 4.8 and Financial Activities 68,000 68,850 1.2 Professional & Business Services 154,700 158,800 2.6 0.9 percent, or 900 and 1,200 jobs, Education & Health Services 234,600 238,500 1.7 respectively. The closure of the DISH Leisure & Hospitality 106,500 109,100 2.5 Network Corporation call center in Other Services 51,300 51,150 – 0.2 Government 128,300 127,100 – 0.9 McKeesport resulted in 600 layoffs Notes: Based on 12-month averages through July 2010 and July 2011. Numbers may not and contributed to declines in the add to totals because of rounding. information sector, and budget cuts Source: U.S. Bureau of Labor Statistics Economic Conditions Continued 3 caused decreases in state and federal shifted away from manufacturing. jobs, contributing to reductions in the Today, the area is the education government sector. Growth in the and healthcare center for western remaining sectors more than offset Pennsylvania, parts of Ohio, and those losses, with notable expansions northern West Virginia. Since 2000, occurring in three sectors: education the share of nonfarm payroll jobs in and health services; logging, mining, the manufacturing sector has declined and construction; and professional from 11 to 8 percent, and the share S and business services sectors, which of jobs in the education and health I S Y increased by a combined total of services sector has increased from L A 9,375 jobs during the 12 months 17 to 21 percent. Figure 2 shows the N A ending July 2011. share of total nonfarm payroll jobs T in the HMA by sector, and Figure 3 E At one time, the HMA manufactured K illustrates sector growth in the HMA R one-half of the nation’s steel supply, A from 2000 to the current date. During M but, as manufacturing declined during G the 12 months ending July 2011, the the 1990s, the area evolved into a so- N education and health services sector I S called “rust belt.” During this transi- U expanded by 3,900 nonfarm payroll O tion, the economic base of the HMA H jobs, or 1.7 percent, a slight increase E Figure 1. T rends in Labor Force, Resident Employment, and Unemploy- from the 3,000-job, or 1.3-percent, V I ment Rate in the Pittsburgh HMA, 2000 Through 2010 growth during the previous 12-month S N period. Leading employers in the HMA E 1,320,000 10.0 H include the University of Pittsburgh A • COMPRE Labor Force & Resident Employment 11111,,,,,221107272700000,,,,,000000000000000 8642....0000 Unemployment Rate MebWmueerpgdslthio cP,ya weel neCitnshe; A nt1htl1eel,er 3 Ug(0Uhn0eiP nveMmeyr HsCpilt)eoy,a y wloetfhei ts PhS;i yat3tsn6st-d,e7m 00, P with 10,600 employees (see Table 3). 1,020,000 0.0 h, 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Nonfarm payroll jobs in the education g and health services sector are expected r Labor Force Resident Employment Unemployment Rate u to grow at the same pace during the b Source: U.S. Bureau of Labor Statistics s forecast period as during the past year. t t Pi Figure 2. Current Nonfarm Payroll Jobs in the Pittsburgh HMA, By the end of 2011, UPMC is planning by Sector to add 1,300 jobs and West Penn Allegheny Health System will start Mining, Logging, & Construction 5.0% Government 11.2% a new medical school. Although the Manufacturing 7.8% Other Services 4.5% number of jobs West Penn Allegheny Health System will add is uncertain, Leisure & Hospitality 9.6% Wholesale & Retail Trade 15.3% the school expects to graduate approx - imately 5,000 physicians a year. In Transportation & Utilities 3.7% addition, UPMC is currently con- Information 1.6% structing UPMC East, a $258 million, Education & Financial Activities 6.1% Health Services 21.0% full-service hospital that will add 400 Professional & Business Services 14.0% jobs when it is completed in 2012, and UPMC Health Plan expects to Note: Based on 12-month averages through July 2011. add 300 jobs during 2012 and 2013. Source: U.S. Bureau of Labor Statistics Economic Conditions Continued 4 Figure 3. Sector Growth in the Pittsburgh HMA, Percentage Change, 2000 to Current Total Nonfarm Payroll Jobs Goods Producing Mining, Logging, & Construction Manufacturing Service Providing Wholesale & Retail Trade S Transportation & Utilities I S Y Information L A Financial Activities N A Professional & Business Services T E Education & Health Services K R Leisure & Hospitality A M Other Services G Government N I – 40 – 30 – 20 – 10 0 10 20 S U Note: Current is based on 12-month averages through July 2011. During this period, government jobs showed no net change. O H Source: U.S. Bureau of Labor Statistics E V I During the past year, the HMA 12-month period. Growth in logging S N became an emerging area for natural and mining is expected to continue; E H gas extraction along the Marcellus 16 companies involved in natural gas E R Shale, a sedimentary rock formation extraction have announced plans to P M that extends from southern New add more than 1,200 jobs in the O C York, through western Pennsylvania HMA during the next 4 years. Range • and eastern Ohio, and into western Resources, a natural gas producer, A Virginia. As a result, nonfarm payrolls is currently constructing a regional P , in the mining and logging subsector facility and will add 250 jobs by h g increased by 25 percent, or 1,600 jobs, November 2011. Chevron undertook r u during the 12 months ending July 2011 a $3 million expansion in 2010 and b s compared with an increase of 11 per- is expecting to hire 140 employees by t t i cent, or 600 jobs, during the previous the end of 2011. P Table 3. Major Employers in the Pittsburgh HMA The professional and business services sector increased by 4,100 jobs, or 2.6 Name of Nonfarm Payroll Number of Employer Sector Employees percent, during the 12 months ending July 2011, up from the 2,700-job, University of Pittsburgh Medical Center Education & Health Services 36,700 University of Pittsburgh Education & Health Services 11,300 or 1.8-percent, increase during the West Penn Allegheny Health System Education & Health Services 10,600 previous 12-month period. Of those Giant Eagle, Inc. Wholesale & Retail Trade 10,400 jobs added, approximately 30 percent Wal-Mart Stores, Inc. Wholesale & Retail Trade 10,000 The PNC Financial Services Group, Inc. Financial Activities 9,150 were in the professional, scientific, Westinghouse Electric Corporation Transporation & Utilities 8,000 and technical services subsector, with The Bank of New York Mellon Financial Activities 7,025 growth attributed in part to natural Corporation Highmark Inc. Financial Activities 5,450 gas extraction on the Marcellus United States Steel Corporation Manufacturing 4,600 Shale. Total nonfarm payrolls in the Note: Excludes local school districts. professional, scientific, and technical Source: Pittsburgh Business Times, Book of Lists, 2011 services subsector increased by 1,350 Economic Conditions Continued 5 jobs, or 2 percent, during the 12 During the 3-year forecast period, months ending July 2011 comp ared nonfarm payrolls are estimated to with a decline of 1,375 jobs, or increase by approximately 45,300 2 percent, during the same period a jobs. Payrolls are expected to grow by year earlier. Developments include 1.2 percent during the first year and Gas Technology Institute’s (GTI’s) increase by an average of 1.5 percent new Pittsburgh field office, to be annually during the second and third completed in August 2011. GTI is years of the forecast period. S a research and development orga- I S Y nization that specializes in energy L A production, delivery, and use. N A T E K Population and Households R A M G N I T S U he population of the Pittsburgh Approximately 50 percent of the O H HMA was estimated at HMA population resides in the VE 2,357,000 as of August 1, 2011, a Central Pittsburgh submarket, 30 SI decline of approximately 0.3 percent, percent in the Southern Pittsburgh N E or 6,475, annually since 2000. The submarket, and 20 percent in the H E population decrease resulted from net Northern Pittsburgh submarket as of R P out-migration that began during the August 1, 2011. Since 2010, the popu- M O 1990s and continued through 2005 lation of the Central and Northern C at an increasing rate, from approxi- Pittsburgh submarkets has increased • A mately 0.2 to 0.6 percent a year, as by 0.1 percent each, or by an average P households moved out in response to annual number of 1,250 and 420, h, the failing manufacturing economic respectively, while the population g r base of the HMA. As the contraction decreased by 0.1 percent, or 970, in u b in manufacturing slowed and overall the Southern Pittsburgh submarket. s t job growth improved, population Net in-migration accounted for all t i P growth gradually moved from annual the population growth in both the declines of 11,100 people, or 0.5 per- Central and Northern Pittsburgh cent, from 2000 through 2005 to an- submarkets. Despite the economic nual increases of 2,075 people, or 0.1 growth resulting from oil extraction percent, from 2006 through April 1, on the Marcellus Shale, the Southern 2010, the date of the decennial census. Pittsburgh submarket population Growth since 2006 is attributed to net declined because of net out-migration in-migration. According to data from and net natural decline (resident the Internal Revenue Service, approxi- births minus deaths). See Figure 4 mately 70 percent of the in-migration for population and household growth since 2006 was from adjacent counties in the HMA and Figure 5 for the outside the HMA, but within Penn- components of population change sylvania, and another 10 percent from in the HMA from 2000 through the adjacent counties within Ohio and forecast period. West Virginia. Population and Households Continued 6 Figure 4. Population and Household Growth in the Pittsburgh Since 2010, household growth in HMA, 2000 to Forecast the HMA has remained relatively 2,000 unchanged. On an annualized basis, 1,000 the number of households has declined 0 by 470 since 2010, despite the slight e ng – 1,000 increase in the population. In contrast, a h al C – 2,000 from 2000 through 2010, the number nnu – 3,000 of households increased by 610, or A e – 4,000 S ag 0.1 percent, a year, but the population YSI Aver – 5,000 declined because larger households L – 6,000 A moved out of the area during the N – 7,000 A beginning-to-middle part of the decade – 8,000 T 2000 to 2010 2010 to Current Current to Forecast and younger professionals with smaller E K Population Households households moved in toward the end R A Sources: 2000 and 2010—2000 Census and 2010 Census; current and forecast— of the decade. See Table DP-1 at M estimates by analyst G the end of this report for household N I Figure 5. Components of Population Change in the Pittsburgh growth in the HMA by tenure from S U HMA, 2000 to Forecast 2000 through the current date. See O H 4,000 Figures 6, 7, and 8 for households by E 3,000 tenure in each submarket since 2000. V NSI nge 2,000 During the forecast period, popula- E ha 1,000 C tion and household growth rates are H al 0 E nu expected to improve slightly, both R An – 1,000 MP age – 2,000 increasing by 0.1 percent, or 1,325, CO Aver – 3,000 annually as strong economic conditions • – 4,000 continue during the forecast period. A – 5,000 The population is expected to reach P 2000 to 2010 2010 to Current Current to Forecast 2,361,000 and the number of house- , Net Natural Change Net Migration h holds is expected to total 1,005,000 g Sources: 2000 and 2010—2000 Census and 2010 Census; current and forecast— r by the end of the forecast period. u estimates by analyst b s tt Figure 6. Number of Households by Tenure in the Central i P Pittsburgh Submarket, 2000 to Current 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 2000 2010 Current Renter Owner Sources: 2000 and 2010—2000 Census and 2010 Census; current—estimates by analyst Population and Households Continued 7 Figure 7. Number of Households by Tenure in the Southern Pittsburgh Submarket, 2000 to Current 250,000 200,000 150,000 100,000 50,000 0 2000 2010 Current S Renter Owner I S Y L Sources: 2000 and 2010—2000 Census and 2010 Census; current—estimates by analyst A N A Figure 8. Number of Households by Tenure in the Northern Pittsburgh T Submarket, 2000 to Current E K R 140,000 A M 120,000 G 100,000 N 80,000 I S U 60,000 O 40,000 H 20,000 E V 0 I 2000 2010 Current S N Renter Owner E H E Sources: 2000 and 2010—2000 Census and 2010 Census; current—estimates by analyst R P M O C Housing Market Trends • A P , h g r u Sales Market—Central Pittsburgh Submarket b s t t The sales housing market in the Central conditions remained weak through i P Pittsburgh submarket is currently July 2011. During the 12 months soft, with a vacancy rate of 2 percent ending June 2011, the most recent (see Table DP-2 at the end of the data available, existing home sales report), because the construction of decreased by 17 percent, to 12,600, single-family homes has exceeded from the 15,100 homes sold during demand by an estimated 800 units a the previous 12-month period and by year since 2000. The current weak- 35 percent from the 19,500 homes ness in the sales market began during sold during the same period in 2006, 2009 as a result of weak economic when sales were strong. conditions in the HMA and stringent The average sales price of existing lending practices. According to data homes increased by 5 percent, to from Hanley Wood, LLC, sales of $158,400, during the 12 months existing homes during 2009 declined ending June 2011 compared with by 28 percent, or 6,000 homes, to a $150,600 in the previous year. This total of 15,700 homes sold. Market Housing Market Trends 8 Sales Market—Central Pittsburgh Submarket Continued increase was partly the result of a 2010 averaged 1,175 homes permit- decline in the volume of REO (Real ted annually, down from the 1,775 Estate Owned) and foreclosed homes, homes permitted annually from 2000 which are priced, on average, approxi- through 2007. Based on preliminary mately $70,000 below other existing data, construction activity remained homes for sale in the submarket, stable during the 12 months ending according to data from Hanley Wood, July 2011, with a total of 1,175 single- LLC. From July 2010 to July 2011, family homes permitted. S the percentage of home loans that SI In the city of Pittsburgh, developments Y were 90 or more days delinquent, in L under construction include Edgewater A foreclosure, or in REO declined from N at Oakmont and the second phase of A 5.1 to 4.9, according to LPS Applied Summerset at Frick Park. Each devel - T Analytics. E opment will transform a brownfield K R Approximately 40 percent of single- site into a residential community A M family construction in the HMA is consisting of detached homes, town - G concentrated in the Central Pittsburgh homes, condominiums, and apartments. N I S submarket. Single-family home With a total development cost estimated U O construction activity, as measured by at $100 million, the single-family por- H the number of single-family building tion of Edgewater at Oakmont will E V permits issued, slowed during the late consist of 63 detached homes and I S 2000s after a period of strong growth 88 townhomes. Construction has N E during the early-to-mid 2000s (see already started and 25 homes already H E Figure 9). Single-family home con- sold. The second phase of Summerset R P struction activity from 2008 through at Frick Park will consist of 200 single- M O family homes, both attached and C Figure 9. Single-Family Building Permits Issued in the Central detached, with plans to build approx- • Pittsburgh Submarket, 2000 to 2011 A imately 30 homes a year starting P 2,000 in August 2011. New single-family , 1,500 h home prices in both Edgewater and g 1,000 r Summerset start at $200,000. u 500 b tts 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 During the next 3 years, demand is i estimated for 3,850 new market-rate P Notes: Includes only single-family units. Includes data through July 2011. sales units in the Central Pittsburgh Sources: U.S. Census Bureau, Building Permits Survey; estimates by analyst submarket (see Table 1). The 300 Table 4. Estimated Demand for New Market-Rate Sales Housing homes currently under construction in the Central Pittsburgh Submarket, August 1, 2011 to will meet a portion of this demand. August 1, 2014 In addition, some of the estimated Price Range ($) Units of Percent 32,500 other vacant units in the From To Demand of Total subm arket may return to the sales 170,000 219,999 390 10.0 housing market and satisfy a portion 220,000 269,999 770 20.0 of the demand. Demand is expected 270,000 319,999 960 25.0 to be stronger during the second and 320,000 369,999 770 20.0 370,000 419,999 580 15.0 third years of the forecast period and 420,000 and higher 390 10.0 greatest in the $270,000-to-$319,999 Note: A portion of the estimated 32,500 other vacant units in the submarket, price range (see Table 4). as well as the 300 units currently under construction, will likely satisfy some of the forecast demand. Source: Estimates by analyst Housing Market Trends 9 Central Pittsburgh Submarket Continued Rental Market—Central Pittsburgh Submarket The Central Pittsburgh submarket From 2000 through 2006, in the rental housing market is slightly soft, Central Pittsburgh submarket, but improving. The overall rental multifamily construction activity, as vacancy rate is currently estimated measured by the number of multifam- at 7 percent, down from 8.9 percent ily permits issued, averaged 1,025 in 2010 (see Figure 10), because the units annually, before declining to S renter household growth within the an average of 370 units permitted I S Y submarket exceeded the development a year from 2007 through 2010 as L A of rental properties. The apartment a result of more stringent lending N A market is tighter than the overall standards that limited development T rental housing market. According (see Figure 11). During the past E K R to data from Reis, Inc., during the sec- year, multifamily development has A M ond quarter of 2011, the apartment increased slightly despite tight lending G vacancy rate averaged 3.9 percent, practices. According to preliminary N decreasing from 5.6 percent during estimates from the U.S. Census I S U the second quarter of 2010. Average Bureau and data from the Downtown O H rents for all apartments increased by Partnership of Pittsburgh and the E 2 percent, to $850, during the second Urban Redevelopment Authority V I quarter of 2011, and rents for Class A of Pittsburgh, approximately 430 S N E units increased by nearly 5 percent, to multifamily units were permitted H $1,075, compared with rents during during the 12 months ending Ju1y E R P the second quarter of 2010. 2011, up from the 350 units permitted M during same period in 2010. Since O C Figure 10. Rental Vacancy Rates in the Central Pittsburgh 2000, approximately 90 percent of • Submarket, 2000 to Current the multifamily development in the A P 10.0 8.9 8.9 submarket has consisted of apart- , 8.0 7.0 ments. During the past 5 years, the h g 6.0 submarket underwent approximately r u 4.0 $400 million in redevelopment, b 2.0 s t transforming industrial manufactur- t 0 i 2000 2010 Current ing areas into residential communities P Sources: 2000 and 2010—2000 Census and 2010 Census; current—estimates by for young professionals. Recent analyst apartment developments within the Figure 11. Multifamily Building Permits Issued in the Central city include conversions from existing Pittsburgh Submarket, 2000 to 2011 manufacturing and commercial 1,400 structures, which added more than 1,200 900 new rental units to the market. 1,000 Since 2010, commercial-to-apartment 800 conversions have included Market 600 Square Place, a 46-unit complex 400 completed in 2010, and River Vue 200 Apartments, with 218 units currently 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 under construction. In addition, the second phase of The Cork Factory, Notes: Includes all multifamily units in structures with two or more units. Includes data through July 2011. with 96 units, and Locomotive Lofts, Sources: U.S. Census Bureau, Building Permits Survey; estimates by analyst with 32 units, will total $8 million in Housing Market Trends 10 Rental Market—Central Pittsburgh Submarket Continued redevelopment in the submarket. Both construction, along with the existing projects are expected to break ground inventory of units available for rent, in September 2011. Average asking is sufficient to satisfy rental housing rents for newly constructed efficiency, demand in the submarket during one-bedroom, and two-bedroom the first year of the forecast period. apartments start at $900, $1,100, and Demand is expected to be stronger $1,300, respectively. during the second and third years of the forecast period. Table 5 shows During the forecast period, demand S estimated demand by rent level for SI is expected for 1,500 new rental units Y new market-rate rental housing in the L in the Central Pittsburgh submarket. A submarket during the forecast period. N The 700 rental units currently under A T E Table 5. Estimated Demand for New Market-Rate Rental Housing in the Central Pittsburgh Submarket, K August 1, 2011 to August 1, 2014 R A M Zero Bedrooms One Bedroom Two Bedrooms Three or More Bedrooms G Monthly Gross Units of Monthly Gross Units of Monthly Gross Units of Monthly Gross Units of N Rent ($) Demand Rent ($) Demand Rent ($) Demand Rent ($) Demand I S U 900 to 1,099 55 1,100 to 1,299 300 1,300 to 1,499 570 1,600 to 1,799 140 O H 1,100 to 1,299 20 1,300 to 1,499 110 1,500 to 1,699 200 1,800 to 1,999 50 1,300 to 1,499 5 1,500 to 1,699 20 1,700 to 1,899 40 2,000 to 2,199 10 E V Total 80 Total 430 Total 810 Total 200 I S Note: A portion of the 700 units currently under construction may satisfy some of the forecast demand. N E Source: Estimates by analyst H E R P Sales Market—Southern Pittsburgh Submarket M O C The sales housing market in the in 2006, when the sales market was • Southern Pittsburgh submarket is soft. strong. Although the number of sales A P The current estimated vacancy rate for existing homes was restricted, , is 1.7 percent, down from 1.9 percent the average price was greater than h g during 2010, because the decline in it was the previous year. During the r u single-family construction activity 12 months ending June 2011, the b s and the reduction in existing inven- average price of an existing home t t i tory, resulting from homes shifting to increased by 6 percent, to $152,700, P the rental market, offset the decline in from $144,600 during the previous owner households (see Table DP-3 at 12-month period. From July 2010 to the end of the report). The reduction July 2011, the percentage of home in the number of owner households loans 90 or more days delinquent, in by an annualized 0.8 percent, or foreclosure, or in REO was nearly 1,875 households, since 2010, along unchanged, declining from 5.5 to 5.4 with tight lending practices, has led percent, according to LPS Applied to a decline in existing single-family Analytics. home sales. According to data from Single-family home construction Hanley Wood, LLC, 410 existing activity, as measured by the number single-family homes sold during the of single-family building permits 12 months ending June 2011, down issued, began to slow in 2005, with from 1,370 homes sold a year ago 1,725 homes permitted that year and well below the 2,150 homes sold