Pittsburgh, Cleveland top global metro affordability list

Pittsburgh and Cleveland rank as the world’s most affordable major housing markets, but a new report finds that not a single metro area among 95 studied actually qualifies as affordable.

The annual Demographia International Housing Affordability report — released by Chapman University — measured affordability by dividing median home prices by median household incomes.

Pittsburgh led the rankings for the fifth year in a row with a score of 3.2, followed closely by Cleveland at 3.3.

St. Louis, Rochester, N.Y., and Oklahoma City rounded out the top five U.S. metros.

Still, all metros worldwide fell above the 3.0 threshold of what’s considered truly “affordable.”

Two local real estate leaders — Dale Swanton, a Realtor at Pittsburgh-based RE/MAX Select Realty; and Amanda Pohlman, a broker at Cleveland’s KW Living and leader of The Pohlman Team — told HousingWire the rankings definitely reflect what they see daily.

The latest HousingWire Data reveals just how affordable Pittsburgh and Cleveland remain compared to their coastal counterparts.

Current median home prices are a dead heat — with Cleveland at $249,000 and Pittsburgh $249,900.

That compares to markers such as San Francisco ($1.2 million) and Los Angeles ($1.5 million). Essentially, homebuyers can purchase nearly six homes in Cleveland or Pittsburgh for the price of one in San Francisco.

Pittsburgh’s inventory currently sits at 3,857 — ahead of Cleveland’s 2,260.

Slow and steady wins the race in Pittsburgh

Swanton said Pittsburgh’s top ranking didn’t surprise him.

“There was an article that came out last month that said Pittsburgh was the only major metro in the U.S. where it’s more affordable to buy than it is to rent,” he said. “The housing market here, we’ve always been kind of like a slow and steady growth type of area.

“Even in 2008, during the housing crisis, we were one of only two or three metros in the country where we didn’t see a huge drop in prices.”

He noted that prices have still risen significantly.

“If you look at our prices from 10 years ago, I mean, they’ve gone up 40% to 50%,” he said. “It’s just, you know, we’re 40% or 50% versus 100% or more [in other parts of the U.S.].”

Even with Pittsburgh setting a worldwide pace for relative affordability, it still failed to meet that true metric in the study.

Swanton said that will likely remain the same until inventory shortages are solved.

“There are a lot of reports that show that new construction just can’t keep up with demand,” he said. “There are a lot of areas where you have a huge influx of people, and that, of course, is driving up home prices.

“Obviously, you have more people [and] more competition. So, I think finding a way to make more inventory available is going to be the best way to increase affordability in other areas.”

Cleveland making its mark

Pohlman said Cleveland has always been affordable — but rising prices elsewhere are drawing new attention to the market.

“This Northeast Ohio market has always been affordable and has always been full of opportunity,” she said. “I think what we’re seeing is now it’s really being put on the map. It’s being made much more noticeable due to how much prices have gone up [around the country], and now, Cleveland has choices that simply don’t exist in Austin, New York or L.A.”

As incoming president of the Akron Cleveland Association of Realtors, she tracks regional statistics.

“(Our home prices) are up year over year,” Pohlman said. “Our median sales price is about $260,000, which is still so much more affordable than most of the metropolitan cities around the U.S.”

For decades, Cleveland homeowners often saw little appreciation compared to other Ohio metros. Like most areas, that shifted during the pandemic. In some neighborhoods, values have soared.

“We are seeing that properties have appreciated, in some cases, 50% or 60% in the last five years, which is unheard of,” Pohlman said. “But even with that appreciation, it looks like it’s just so much more in reach for families to become homeowners.”

Climate refuge, business influx

Pohlman also pointed to Cleveland’s climate and healthcare system as long-term strengths.

“We do not have the tornadoes, the wildfires, all of those things that other areas are seeing,” she said. “I think what we’ve seen is a lot of people shying away from Florida because of what’s happened in the last two or three years with the hurricane[s].”

She added that renowned medical facilities and livable winters are drawing people, too.

“Our healthcare is absolutely top notch, worldwide, top notch,” Pohlman said. “Our climate is actually a real hidden secret, because we have lovely weather, and we do have seasonality to it, and not everybody hates the snow.”

Swanton said Pittsburgh remains a target destination for businesses to set up shop.

“The cost of living here is certainly very affordable here,” he said. “A lot of companies are coming into the area, especially a lot of tech companies. So, there’s a lot of good jobs in the area and a lot of good universities.”

The full Chapman University report can be found here.