Housing costs boom over Allegheny County, forcing people of color to move
PITTSBURGH (KDKA) — A Pittsburgh community group said for people of color the city is not as affordable as it is for white people.
From 2010 to 2020, more than 10,000 people of color left the city limits for various reasons, including housing costs. Many went to nearby suburbs, where prices are down.
According to realtor.com, the current median price for a house in Pittsburgh is $230,000. For some neighboring communities like Penn Hills, the price is lower by about $80,000. Neighborhood groups are helping to make the city more affordable for everyone.
"To see a lot of our longtime residents and families have to leave is troubling," Bloomfield Development Corporation Executive Director Christina Howell said.
Bloomfield is one of the latest neighborhoods to see an investment boom. According to the Bloomfield Development Corporation, property values have gone up about 180% over the past five years.
"These folks were here before higher-income folks moved in, and they're some of the reason developers are choosing this neighborhood," Howell said.
It's a similar story to what's happened in neighborhoods like East Liberty and Lawrenceville, and it has disproportionally impacted people of color.
"In some areas, it's where housing prices are through the roof and some distressed neighborhoods that are still working to get that investment," Pittsburgh Community Reinvestment Group research analyst John Boyle said.
The Pittsburgh Community Reinvestment Group says from 2010 to 2020, the percentage of people who owned their homes dropped. For Black households, only 30% owned a home. For white households, it was 56%.
This is due in part to wage and credit score gaps.
"This is all before the pandemic. So, obviously, we are seeing things rise even more, which is something we are concerned about," Boyle said.
According to Coldwell-Banker realtor Chris Ellson, housing prices went up about 9% in the region from 2012 to 2017. They went up about 65% from 2017 to 2022.
Suburbs like Penn Hills, Monroeville, McKees Rocks and Stowe Township became home to people who have been displaced. In neighborhoods like Bloomfield and Polish Hill, the inclusionary zones are one tool to help create more affordable housing.
"People should be able to stay in the neighborhood that they helped build up," Howell said.
The law calls for 10% affordable housing when a project has 20 or more units. It's applauded by state leaders like 21st District Representative Sara Innamorato. She represents many neighborhoods where there is an investment. According to her, alternate solutions need to be looked at to make sure everyone can afford a home.
"That allows people to build equity, build long-term connections with their community and also have a safe, stable and affordable place to call home," she said.
Her office is pushing legislation this budget season to help long-time homeowners on a fixed income. If they are to have a problem that could cause code violations to stack up, her office wants financial assistance to be available to them.
According to neighborhood groups, inclusionary zoning won't solve everything, but it's a start. They hope to have more help from land banks and affordable housing developers.
Innamorato said leaders in Harrisburg could try to look at codes to allow for a Philadelphia policy to be used in other cities. Philadelphia has a policy that allows long-time homeowners to have tax freezes to afford their homes.
According to Ellson, there is no timetable yet on when the housing market could cool off.
"As interest rates keep going up, it's going to price buyers out of the market, which will start to equalize the market and take a little bit of leverage from the seller," he said.