Most neighborhoods have bigger footprint homes, built when the city’s population of 305,000 was double its size. Other areas have smaller homes, such as Carrick, which was built for middle class millworkers, and Stanton Heights, developed in the 1950s and ‘60s.

A buyer can find, “if not bargains, certainly reasonably priced homes in reasonably good condition,” says Straussman.

Arabella St. in Knoxville. Photo by Brian Cohen.

Arabella St. in Knoxville. Photo by Brian Cohen.



Matthew Galluzzo, executive director of Lawrenceville Corporation, acknowledges “profound market pressure does exist in our neighborhood, for a lot of different reasons.” He cites the Children’s Hospital of UPMC and a bustling business district with shops, restaurants, a movie theater, pinball arcade and bowling alley.

“We saw it by the end of 2012,” Galluzzo says, recalling a home needing work that sold for $411,000. “We realized the market was turning much more quickly than we’d seen.”

To address the need for permanent, affordable housing, Lawrenceville Corporation last year “green-lit what will become the first community land trust in the city,” using its equity and money from philanthropy and the URA, he says.

Galluzzo doesn’t want to discourage the wealth creation that’s happening – “there are clear benefits to having a stable real estate market,” he says – but none of the new housing units coming online will be affordable.

“That’s a crisis for us,” he says.

Carroll St. in Lawrenceville. Photo by Brian Cohen.

Carroll St. in Lawrenceville. Photo by Brian Cohen.




Exploring options

These days when Greg Panza visits Lawrenceville for a night out with friends, “I feel like I’m on vacation,” he says.

Panza, 44, a Realtor with Northwood Realty Services, suggests prospective home buyers look at his neighborhood of Mt. Washington.

“Some people are real diehards and they want to be out that way,” he says of Lawrenceville, “but I’m trying to communicate to people there are other options that are half the price with just as cool homes and with growing amenities.

“So before you spend $400,000 on a house, come to Mt. Washington to see the same house for $250,000, with parking (and) a little more elbow room.”

The Mt. Washington Community Development Corporation bought and renovated homes in the Estella micro-neighborhood during the past five years. “What was our poorest performing neighborhood has dramatically increased in value,” Panza says. “The highest priced home that sold in 2010 was $100,000; in 2015, the highest priced home was $230,000 and that was a remodel, gutted and flipped. Even the median price went from $38,000 to $75,000.”

Nearby, Joe Calloway, owner of RE 360 development company, is committed to erasing Allentown’s decline. In the 1990s, before the Zone 3 police station moved there, “it was one of the worst” neighborhoods for crime, he says.

But Calloway, 35, of Pine took the risk and began buying properties. He owns around 40 parcels in Allentown, including 11 commercial storefronts and two warehouses, and his construction company helps offset his remodeling costs.

He convinced the Birmingham Foundation to invest in his project to buy low-cost, rundown homes and fix them up for sale at $125,000 to $150,000 – or more.

“Allentown is on the cusp – an up-and-coming neighborhood like South Side Slopes,” Calloway says. “You get an amazing amount of house in these neighborhoods, considering Allentown is one mile from Downtown. This is a great community.”

Unlike Lawrenceville’s obvious transformation from industrial past to a shopping and dining destination, it’s too early to track real turnaround in Allentown, Calloway acknowledges. But he and Panza and Josh Lucas, with the Work Hard Pittsburgh small-business incubator, have faith in its eventual transformation.

Photo of Allentown by Zos Xavius

Photo of Allentown by Zos Xavius

“You can see the change already – a lot of young people,” says Lucas, of Duquesne Heights.

Some Allentown homes Calloway bought for $30,000 or $40,000 and invested around $10,000 in cosmetics to make them more livable. Others required $50,000 or more to modernize.

Pittsburgh’s median income of around $55,000 doesn’t support homes costing $400,000, he says. “It’s not realistic. It’s not affordable for a lot of people. Not everyone works for Google or a big law firm Downtown. They’re looking to buy in that $150,000 range.”

Calloway made available a warehouse for the Hilltop Alliance’s program, Industry on Industry, which offers discounted studio space to makers and artists. The program is part of the thrust to lure businesses by offering 50% rent abatement for their first year.

Lucas’ incubator and Academy Pittsburgh boot camps aim to help people become self-reliant by learning marketable skills.

“We’re hoping to attract people who fall in love with the community, buy a house and raise a family,” Calloway says. “When we started up here three years ago, everyone thought he and I were crazy. But then came the coffee shop, and tenants in the warehouse who make reclaimed artisan goods, and Leon’s Caribbean, and Spool, the boutique fabric shop.

“We’re getting a ton of people coming. They’re being forced out (of higher-priced neighborhoods) or they’re losing their places to work. We’re saying come over and get good quality space.”