This is a complete analysis on the best cities for investing in Pennsylvania real estate.
Based on market data with source links.
Learn where to buy the most profitable investment properties, short term rentals and flip homes.
Let’s jump right in.
Here are the best cities in PA to buy an investment property:
Pittsburgh
Pittsburgh is recognized as one of the most affordable and desirable markets in the Northeast. Offering a strong local economy and job market for potential real estate investors.
The city’s affordability, coupled with its economic stability, has attracted investors seeking to capitalize on the potential for long-term appreciation and profitability in the city’s real estate market here.
Pittsburgh is known for its rich industrial history and has transformed into a center for technology, education, and healthcare. The city’s evolving job market has positively impacted its real estate sector. According to Zillow, the median home value in Pittsburgh has been on a consistent rise, making it a promising area for long-term investments.
1 bedroom rent: $1,375 (-5% YoY)
Median days on the market: 57
Median home price: $217,950 (+1.4%)
Homes sold above list: 22.5%
Rental market data | Housing market data
Philadelphia
Philadelphia presents a seller’s market with increasing median home prices and sustainable rent growth. Indicating that profitable opportunities are available for real estate investors. The high demand for the city’s housing market further solidifies its position as a top city for investment.
Philadelphia’s thriving real estate market is complemented by the city’s increasing home prices and rental demand. As a result, investors are drawn to the city’s dynamic real estate landscape, recognizing the potential for substantial returns and long-term growth in their investment portfolios.
Blending historical significance with modern economic growth, Philadelphia becomes an ideal city in Pennsylvania for real estate investing. The city’s diverse economy, with sectors like finance, healthcare, and education, has fueled its real estate market.
Zillow reports a significant increase in median home values over the past year, with an average price of $250,000. Philadelphia’s ongoing urban development projects and cultural vibrancy also make it an attractive option for investors seeking capital gains and strong rental markets.
1 bedroom rent: $1,710 (-8% YoY)
Median days on the market: 52
Median home price: $235,000 (-2.9%)
Homes sold above list: 22%
Rental market data | Housing market data
Allentown
Allentown has seen significant growth in the rental market and an increase in median rent prices, making it an appealing city for real estate investors in Pennsylvania. The ongoing revitalization efforts in the downtown area further enhance its investment potential.
For example, Allentown’s downtown revitalization efforts have led to increased property values and rental demand, making it an ideal location for real estate investment. The city’s strategic initiatives and infrastructural enhancements have not only boosted the appeal of the area but have also attracted a surge of interest from real estate investors seeking promising opportunities for long-term returns.
Its growing sectors in manufacturing, healthcare, and retail have boosted demand for real estate. For example, publicly available Zillow data shows a steady increase in home values, averaging around $200,000. The city’s rental market is vibrant, driven by an increasing population and redevelopment efforts.
1 bedroom rent: $1,837 (+5% YoY)
Median days on the market: 8
Median home price: $235,000 (+10.1%)
Homes sold above list: 54.5%
Rental market data | Housing market data
Erie
Erie, known for its waterfront charm and industrial heritage, offers unique opportunities. The city has seen a 5% increase in median home values, with current prices averaging near $175,000. Erie’s proximity to major cities like Pittsburgh and Cleveland adds to its appeal for both residential and rental real estate investments.
1 bedroom rent: $1,192 (+0% YoY)
Median days on the market: 14
Median home price: $171,500 (+6.5%)
Homes sold above list: 23.1%
Rental market data | Housing market data
West Chester
West Chester, a blend of suburban comfort and economic vitality, stands out for its high living standards and growing job market. Median home values have been increasing 8% year-over-year, currently estimated at $350,000. Its vibrant local economy and quality school districts contribute to a steady demand for housing.
1 bedroom rent: $1,772 (-5% YoY)
Median days on the market: 21
Median home price: $530,000 (-7.8%)
Homes sold above list: 21.1%
Rental market data | Housing market data
State College
State College has been identified as a promising city for real estate buyers in 2024. Offering real estate at an affordable cost and potential for steady population growth.
State College’s have garnered attention from investors seeking promising opportunities in the Pennsylvania real estate market. The city’s favorable investment climate, coupled with its promising outlook for future appreciation, makes it an attractive option for those looking to diversify their real estate portfolios.
1 bedroom rent: $1,222 (-1% YoY)
Median days on the market: 25
Median home price: $300,000 (+18.8%)
Homes sold above list: 0%
Rental market data | Housing market data
Bethlehem
Bethlehem has experienced major revitalization efforts and offers real estate incentives for investors, making it an attractive city for real estate investment in Pennsylvania.
An example of this is Bethlehem’s tax incentives and development programs, which have encouraged real estate investment and revitalization projects.
The city’s proactive approach to fostering a conducive environment for real estate investment has resulted in a surge of interest from investors and private companies. Positioning Bethlehem as a prime location for those seeking profitable opportunities in the Pennsylvania real estate market.
1 bedroom rent: $1,705 (+1% YoY)
Median days on the market: 15
Median home price: $285,000 (+12%)
Homes sold above list: 49.3%
Rental market data | Housing market data
Is Pennsylvania good for real estate investing?
The real estate market in Pennsylvania has garnered significant attention as an attractive destination for investors. Ranking as the 18th cheapest state for buying a house. Pennsylvania’s rental property market offers promising opportunities for real estate investment. This affordability factor is a significant draw for real estate investors looking for lucrative opportunities.
Pennsylvania’s real estate market dynamics are influenced by several key factors that make it an attractive destination for many property investors everywhere.
The demand for single-family suburban homes has contributed to the state’s red-hot housing market, creating favorable margins for investment. This trend has not only driven property values but has also paved the way for lucrative prospects in the rental property investment market, particularly in cities like Allentown, Bethlehem, and Philadelphia.
Predictions for Pennsylvania’s housing market in 2024 are optimistic. Experts anticipate a balanced market with stable interest rates, a stable economy and a steady increase in homebuyers. The market is expected to favor sellers due to rising home prices and limited inventory.
5 Best Cities in Pennsylvania to Fix and Flip Properties
Success in the fix and flip market depends on timely renovations, understanding of the local market, and buying properties at a price that produces the highest after-repair value. Here are the top five cities for fix and flip properties in Pennsylvania to get started with your research:
Pittsburgh
Pittsburgh is a desirable location for investment due to its economic transformation, population growth, and available home inventory. The median sale price of homes in Pittsburgh is currently around $230,000.
Philadelphia
Philadelphia offers affordable real estate and numerous redevelopment opportunities. It also experiences rapid property turnover and short listing durations. Making it one of the best cities for real estate investment in Pennsylvania.
Allentown
Allentown’s ongoing urban revitalization and affordable property prices make it an attractive city for investors interested in buying, fixing, and flipping properties.
Erie
Erie offers a scenic lakefront and industrial background. There are lots of affordable housing options and a booming housing market. Consistent tourism and lake views keep the demand high which is great when it comes time to flip.
West Chester
West Chester’s high living standards and proximity to major urban centers like Philadelphia make it an appealing city fueled with demand. Homes stay on the market for an average of 14 days, making it a great choice to flip homes in West Chester.
7 Best Cities in Pennsylvania for Rental Properties
In each of these cities in Pennsylvania, certain neighborhoods may offer better investment opportunities than others. If you’re a real estate investor looking for opportunities, consider important factors like the proximity to major employers, universities, public transportation and percentage of government employees which receive a stable paycheck.
Philadelphia
Philadelphia’s has a strong seller’s market with increasing median home prices. This will benefit investors in the long term due to capital appreciation. It also has a robust job market and many universities, making it a favorable city for rental property investing.
Allentown
Allentown’s proximity to major cities like Philadelphia and New York, combined with its own economic growth, bolsters the rental market. It has a growing rental market and consistently increasing rent prices. The renovated downtown will continue to build future demand.
Pittsburgh
Pittsburgh, with its strong job market in technology and healthcare, creates consistent demand for rental properties. The city’s diverse economy and many popular universities also contribute to this demand for renting.
Bethlehem
As part of the city government’s revitalization efforts, they’ve offered financial incentives to real estate investors who want to buy and rent in Bethlehem. Since 2020, the city has experienced significant home value growth and has left many homebuyers behind. This further ruled rental growth.
West Chester
West Chester’s high quality of life and strong school districts attract families and professionals, leading to a steady demand for quality rentals. Its higher rent price averages contribute to higher profits for those investors who are patient to look for good deals.
Erie
Erie, with its unique waterfront location and industrial roots, offers attractive rental opportunities, particularly in areas near the waterfront and downtown.
Harrisburg
Harrisburg is known for stability due to its large government employment sector and a growing healthcare sector. This provide a consistent and reliable tenant base.
With a variety of promising cities, a positive market outlook, and national recognition, Pennsylvania stands out as a favorable destination for real estate investors.
Is Pennsylvania good for real estate investing?
Pennsylvania, a state with a rich historical background and a diverse economic landscape, is becoming an increasingly popular choice for real estate investors. The state offers a blend of urban and rural environments, with a range of investment opportunities in both residential and commercial properties.
As of September 2023, home values have increased by an average of 38.7% over the past five years. The median home price in Pennsylvania was around $280,000, showing stable growth from previous years. This makes the state an attractive market for both buyers and sellers.
When considering the best cities in Pennsylvania for real estate investment, it’s important to look at factors like market trends, average property costs, and economic growth. With that being said, Pennsylvania’s housing market has shown resilience and growth.