PITTSBURGH | Development Rundown II

[BrianTH]

Random comments:

(1) You can see why affordable new homes would have a market, even if they were modest, but apparently delivering a new home which is affordable is a challenge--if you can't even do a small house for $100,000, you are pricing out people like Ms. Keating;

(2) You can also see why house-flipping is doing well in Pittsburgh--if you can take one of those older homes and do sensible renovations, you will find a lot of demand. All of which is good--as Briem points out, older housing stock is not inherently a problem, but you do need investment to make it marketable, and as long as that is what the house-flippers are doing then great;

(3) Finally, you can see why people are going to start pushing out south, north, and maybe west, not just sticking to the East End, in the pursuit of neighborhoods in or near the core with affordable housing prices.

That said, there are large parts of the East End and eastern inner ring suburbs (like Wilkinsburg) that are not that expensive yet, but are currently off the list of buyers like Ms. Keating. So there is more potential out east as well.

[Austinlee]

Originally Posted by Evergrey

http://www.bizjournals.com/pittsburgh/pr...ential-rush-puts-pressure-on-prices.html

Wow, this is one of the most eye opening articles i've ever read on local real estate. I think the old housing stock IS an issue; Maybe if more people could do complete rehabs with better insulation, windows, furnace, AC, etc but Pittsburgh isn't known for very high salaries to do basement to roof renovations. Maybe in Boston it's not so much a problem.
I personally like older homes with character but some people don't.

And of course the bigger issue is that massive number of vacant or uninhabitable houses. "there are 10,048 homes in Pittsburgh that are essentially uninhabitable due to issues of age and neglect, compared to the 11,633 houses that are in livable condition." GEEZ! Nearly 50% of the city housing inventory is shit? That's unbelievable. I've never heard these numbers. Along with 20,000 vacant lots. Shit man.

[BrianTH]

Originally Posted by Austinlee

And of course the bigger issue is that massive number of vacant or uninhabitable houses. "there are 10,048 homes in Pittsburgh that are essentially uninhabitable due to issues of age and neglect, compared to the 11,633 houses that are in livable condition." GEEZ!

I guess I am not so surprised. The fact is there are lots of obscure neighborhoods off the beaten path in the City which are basically falling apart, and then there are a bunch more neighborhoods which are not so poorly located, but for various reasons are severely disinvested.

In fact, if you look at Page 38 of the cited report:

http://ucsur.pitt.edu/wp-content/uploads/2014/11/Hilltop-Report-Final-July-10-2013.pdf

. . . you can see that while the Hilltop in general averaged out pretty typical for the City in the relevant category--6.9% of Hilltop residences were vacant and not habitable, versus 6.2% for the City as a whole--in certain neighborhoods the percentage was much higher: Allentown 13.1%, Beltzhoover 17.6%, and St. Clair 83.2%. Allentown and Beltzhoover would be in the severely disinvested category, and St. Clair would be in the obscure/falling apart category.

Conversely, in Mt. Washington, the percentage was only 3.3%--less than half the Hilltop average, and not much more than half the City average.

So for those of us who very rarely get off the beaten path, this category of houses is not very visible. But there are large chunks of the City where this is still going on.

The good news is that those disinvested but fundamentally well-located neighborhoods like Allentown and Beltzhoover probably still have a chance to come back some day, perhaps with the help of house-flippers, strong local community organizations, and so on. In contrast, I'm not sure neighborhoods like St. Clair can be saved in any meaningful sense--maybe in the future we will want to redevelop that land, but I am not sure there will be much left of any pre-existing structures by then.

[BrianTH]

Faros is incorporating a 50,000 sqft shared workspace called Alloy 26 in its Nova Place (formerly Allegheny Center Mall) plans:

http://www.bizjournals.com/pittsburgh/bl...-collaborative-workspace-as-part-of.html

That is quite a bit of space for something like that, although still just a small fraction of the overall space in the complex.

[Minivan Werner]

http://www.post-gazette.com/local/city/2...-the-Strip-District/stories/201509090217

Another boutique hotel proposed in the Strip District

Concord Hospitality Enterprises Co. announced today that it is planning to build a seven-story, 131-room boutique hotel at 1100 Smallman Street, next to Eleven restaurant.

Among the amenities will be an upscale lounge, conference and meeting space, a fitness center and a parking garage. The hotel will be close to the David L. Lawrence Convention Center. Concord hopes to start construction in the spring of next year, pending city approvals.

[dfiler]

Originally Posted by Evergrey

http://www.bizjournals.com/pittsburgh/pr...ential-rush-puts-pressure-on-prices.html

It's worth noting that the those once affordable neighborhoods weren't as appealing back when they were affordable. That type of neighborhood still exists just as it did back then, on the borderline between good and bad areas.

I think sometimes people forget what boom neighborhoods were like before the boom. If people think its worse to buy in Pittsburgh now then it was 10 years ago, they're looking at history through rose colored glasses.

[eschaton]

It seems worth noting that article on East End housing prices is over a year old. Given the price appreciation has not let up since last May, the market is likely even worse today. You can still by houses in Greenfield, Morningside, and Stanton Heights at that price. Even a few condos and townhouses in parts of Oakland and Shadyside, and some small near gut jobs in Bloomfield/Lawrenceville. Plus of course houses in still transitional areas like Garfield, Hazelwood, and Sugar Top. But at current appreciation rates we're probably only another 5-10 years away from a $100,000 house in any non-ghetto portion of the East End being impossible.

Edit: I think first-time homebuyers have really been hurt by the hot rental markets in Pittsburgh. Even a modest home somewhere in the East End can result in good cash flow for a landlord, given how high rental prices have climbed. There definitely seems to be less on the market in a lot of hot areas, which exacerbates the issue of higher prices.

[Austinlee]

Originally Posted by dfiler

It's worth noting that the those once affordable neighborhoods weren't as appealing back when they were affordable. That type of neighborhood still exists just as it did back then, on the borderline between good and bad areas.

I think sometimes people forget what boom neighborhoods were like before the boom. If people think its worse to buy in Pittsburgh now then it was 10 years ago, they're looking at history through rose colored glasses.

It's a known phenomenon.

Neighborhood Starting To Get Too Safe For Family To Afford
NEWS IN BRIEF
August 28, 2015
VOL 51 ISSUE 34
Local · Cities · Violence



http://www.theonion.com/article/neighborhood-starting-get-too-safe-family-afford-51197

[themaguffin]

I personally like older homes with character but some people don't.

I like some older homes too, but Pittsburgh is dominated with clusters of narrow, similar homes. I don't find them charming, though some have interesting character inside. Many I find unattractive in terms of their exterior. The layouts are not going to be appealing to everyone and that's the thing - again, Pittsburgh is saturated with these homes. It's ironic that many new developments get called "cookie cutter" and that might be accurate, but so are these older homes. When they were built, they were built for efficiency for working class Pittsburghers, not for style.

Many of these homes have things and the build quality of yesteryear, but Pittsburgh lacks a diversity of options in this regard.

[eschaton]

It looks as if the new hotel will be going in right next to Eleven. That is to say, not in the vacant parking lot across the street, but with the non-Eleven portions of the existing building on that block being leveled, but the restaurant staying put. Pretty similar to what happened with Lidia's and Homewood Suites actually.

I suppose this also means those plans for a skinny apartment building to be constructed directly behind the existing building are totally dead. Probably have been since the parcel was bought from Walnut Capital last year.

[eschaton]

Originally Posted by themaguffin

I like some older homes too, but Pittsburgh is dominated with clusters of narrow, similar homes. I don't find them charming, though some have interesting character inside. Many I find unattractive in terms of their exterior. The layouts are not going to be appealing to everyone and that's the thing - again, Pittsburgh is saturated with these homes. It's ironic that many new developments get called "cookie cutter" and that might be accurate, but so are these older homes. When they were built, they were built for efficiency for working class Pittsburghers, not for style.

Many of these homes have things and the build quality of yesteryear, but Pittsburgh lacks a diversity of options in this regard.

I think Pittsburgh's older homes tend to suffer far more due to the unique culture of remuddling here than anything. This is particularly the case with older wood-frame houses in Bloomfield, where it's very rare to find any house which wasn't "improved" through replacement of wood cladding with siding, removal of all trim, and most damagingly, installation of ill-proportioned windows to the house in question. The few wood-frame houses which have been lovingly restored can be quite charming, but it takes a lot of work that flippers just aren't willing to put in.

[Minivan Werner]

Originally Posted by eschaton

It looks as if the new hotel will be going in right next to Eleven. That is to say, not in the vacant parking lot across the street, but with the non-Eleven portions of the existing building on that block being leveled, but the restaurant staying put. Pretty similar to what happened with Lidia's and Homewood Suites actually.

I suppose this also means those plans for a skinny apartment building to be constructed directly behind the existing building are totally dead. Probably have been since the parcel was bought from Walnut Capital last year.

If it's going to be butting up against 11th directly across from the convention center I'd prefer a little more height. That's CBD territory and far enough from the river to be much taller than just 7 floors. But all that's there now is a 1 story building and surface parking, so I guess it's an improvement.

[BrianTH]

Yeah, it breaks my heart to think of what Bloomfield could have looked like. But nothing is forever--maybe at some point it will get to the point it starts being restored along those lines.

Anyway, I'm sort of resigned to the Strip mostly being a 5-7 story sort of neighborhood (barring crazy tech money building some condo towers), so this sounds like a promising project. But it raises again the question--why exactly does any sort of convention center hotel on 10th itself require massive public subsidies?

[Gilamonster]

In hotel news a little further down the pipeline:

All of the heavy equipment is gone and rubble removed from from the future Holiday Inn site on Fort Pitt Blvd.

Work has completely stopped on the new Distrikt hotel.

[Austinlee]

Originally Posted by eschaton

I think Pittsburgh's older homes tend to suffer far more due to the unique culture of remuddling here than anything. This is particularly the case with older wood-frame houses in Bloomfield, where it's very rare to find any house which wasn't "improved" through replacement of wood cladding with siding, removal of all trim, and most damagingly, installation of ill-proportioned windows to the house in question. The few wood-frame houses which have been lovingly restored can be quite charming, but it takes a lot of work that flippers just aren't willing to put in.

Pittsburgh has some of the most gorgeous homes i've ever seen and some of the ugliest homes i've ever seen. Like, so ugly if you had an ugly house building contest I don't think I could design a worse house.

[eschaton]

Eyeball report from Lawrenceville that it seems like the "Square View Apartments" may begin construction soon, considering the sidewalk in front of the planned location is now fenced off and an excavator has been planted on the site for awhile. It's cool that there will be three infill projects going on Butler simultaneously.

Originally Posted by BrianTH

Yeah, it breaks my heart to think of what Bloomfield could have looked like. But nothing is forever--maybe at some point it will get to the point it starts being restored along those lines.

They're doing a gut rehab right now of a structure along Friendship Avenue in Bloomfield. Looks like it used to be a duplex but was converted into one house. Regardless, even though it was very clear once they took off the siding what the original window openings were (they were still in place!) the flipper decided to block out some entirely new, squarish shaped windows. Made my eyes itch when I saw it.

[daviderik]

Originally Posted by BrianTH

Business Times roundup:


The Cambria Suites next to Consol has been bought and the new owners plan significant upgrades:

“It’s going to take this property from its upscale select service status to really being a boutique full-service hotel,”

This hotel was one of the more affordable in the Downtown Area. Always the cheapest stay. That will no doubt change with this news.

[Private Dick]

Originally Posted by daviderik

“It’s going to take this property from its upscale select service status to really being a boutique full-service hotel,”

This hotel was one of the more affordable in the Downtown Area. Always the cheapest stay. That will no doubt change with this news.

Maybe they will add 20 stories to the top of it...

[Evergrey]

Originally Posted by themaguffin

I like some older homes too, but Pittsburgh is dominated with clusters of narrow, similar homes. I don't find them charming, though some have interesting character inside. Many I find unattractive in terms of their exterior. The layouts are not going to be appealing to everyone and that's the thing - again, Pittsburgh is saturated with these homes. It's ironic that many new developments get called "cookie cutter" and that might be accurate, but so are these older homes. When they were built, they were built for efficiency for working class Pittsburghers, not for style.

Many of these homes have things and the build quality of yesteryear, but Pittsburgh lacks a diversity of options in this regard.

I'd like to see more houses in Pittsburgh like these:

[eschaton]

Originally Posted by Evergrey

I'd like to see more houses in Pittsburgh like these:

The second to the last one seems very McMansiony and generic. And in general I hate the trend in high-end housing towards incredibly complicated, asymmetrical roofs.

My taste in modern infill runs towards this...











The last one is more suburban, but it would look great somewhere in Mount Lebanon.