Report: Pittsburgh house flippers earn highest average gross return on investment
(The Center Square) – Pittsburgh house flippers earn the highest return on investment, according to a recent Wallet Hub analysis of nearly 200 cities nationwide.
The website’s analysis showed gross profits for real estate investors in the Steel City are nearly 10 times higher than those recouped in Raleigh, North Carolina – the lowest-ranking city. While a seller in the latter earned just under a 14% return, Pittsburgh flippers had a 128% return for their efforts.
Overall, however, the city ranked 82 out of 172 when considering other factors such as market potential, renovating costs and quality of life. The study rated Sioux Falls, South Dakota, as the best city for house flippers, and Newark, New Jersey, was designated the worst.
The numbers reflect Pittsburgh’s steady-growing market, with median home prices rising and listings selling up to 10 days faster, according to a September report from Forbes.
“Pittsburgh is on a slow and steady course,” Mekael Teshome, vice president and senior regional officer of the Pittsburgh branch of the Federal Reserve Bank of Cleveland, said during an interview with Roofstock. “All in all, Pittsburgh’s outlook is favorable, with persistent and moderate growth ahead.”
Home values in Pittsburgh have climbed 55% over the past five years and nearly 20% in the past year alone, according to the publication, with many properties selling slightly above list price.
Nationwide, record-low levels of inventory and interest rates have boosted month-over-month median home prices by as much as 20% in some areas, according to a CNBC report published Saturday.
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