Unveiling Corporate Impact: PCRG Study Details Predatory Investors' Influence on City of Pittsburgh, Allegheny County Housing

MEDIA RELEASE
August 25, 2023

Pittsburgh, PA — Corporate real estate investors purchased more housing stock in Pittsburgh and Allegheny County over the past decade, at a fraction of regular homebuyer prices, according to the Pittsburgh Community Reinvestment Group’s latest study.

The report examined home purchasing patterns by census tract from 2010 to 2021 to identify areas prone to predatory investments, highlight their harmful effects and outline steps local, state and local governments can take to prevent displacement and preserve affordable homeownership opportunities.

“We wanted to pinpoint which corporate entities are responsible for the uptick in Allegheny County’s predatory investments – specifically the purchase of single-family homes over the last 10 years,” PCRG Executive Director Ernie Hogan said. “In that period, corporate purchases rose approximately 9%, mostly in historically Black and low-to-moderate income neighborhoods. These corporations are stripping the wealth of would-be homeowners and holding back many of our communities.”

“The corporate-backed takeover of properties only adds to a long list of existing barriers for first-time homebuyers,” PCRG Research Analyst Druta Bhatt said. “Corporate buyers can also drive-up rents in neighborhoods, increase vacant properties because of their speculation and raise property values, which could force long-time residents out of their homes.”

Findings from this study helped guide PCRG’s advocacy and policy priorities. Those include a push to pass the federal Stop Predatory Investing Act, introduced by Sen. Sherrod Brown (D-OH) and co-sponsored by Sen. John Fetterman (D-PA), which aims to curb corporate advantages in the housing market and level the playing field for individual buyers and smaller landlords. The legislation must pass a vote in the Senate Committee on Finance to advance.

Read PCRG’s Corporate Housing Study and explore the accompanying interactive data component.