Pittsburgh Housing Revitalization

Pittsburgh Housing Revitalization – Shapiro’s Action Plan

Pittsburgh has always been a city of reinvention. From its steel mill roots to its modern day tech and education driven economy, the city continues to evolve. Now, a new chapter is underway focused on Pittsburgh housing revitalization.

Governor Josh Shapiro’s Housing Action Plan proposes over $60 million in funding to restore homes, uplift distressed neighborhoods, and expand housing affordability. With many of Pittsburgh’s most underserved communities poised to benefit, this initiative represents a significant investment in the city’s future socially, economically, and structurally.

To understand how Pittsburgh’s past shapes its revitalization trajectory, check out our deeper dive into Pittsburgh’s History and What It’s Known For.

Whether you’re a property owner, investor, or someone looking to sell a distressed home, this blog outlines what’s coming and what it could mean for you.

What Is the Housing Action Plan?

Governor Shapiro’s Housing Action Plan, previewed in late 2024 and currently working through budget channels, includes:

  • $50 million for restoring Pennsylvania’s aging housing stock

  • $10 million in new funding for the PHARE fund (Pennsylvania Housing Affordability and Rehabilitation Enhancement)

The plan targets the dual challenge of aging infrastructure and housing affordability. Pittsburgh, where over 60% of homes were built before 1940, is a central focus.

Target Neighborhoods for Revitalization

While the full list of areas targeted by the Housing Action Plan is still unfolding, several Pittsburgh neighborhoods are highly likely to benefit:

Hill District

Undergoing a $400 million transformation to replace the city’s oldest public housing complex and reinvigorate community spaces. As detailed in this Pittsburgh Post-Gazette article on affordable housing, the Hill District stands at the forefront of Pittsburgh’s revitalization push, combining city, state, and nonprofit efforts.

Homewood

With over 30% of properties vacant or blighted, it’s a strong candidate for home restoration funding and PHARE-supported initiatives.

Hazelwood

Adjacent to Hazelwood Green and Carnegie Mellon’s Advanced Robotics hub, this neighborhood has huge redevelopment potential with the right support.

Beltzhoover and Knoxville

Both areas offer historically significant architecture and low property costs prime for revitalization.

East Liberty

Rapid development has priced out many residents. State-funded programs could reintroduce affordability and housing stability.

To see a statewide map of priority development zones, including Opportunity Zones in Pittsburgh, visit the PA Housing Action Plan page.

What Are Opportunity Zones?

Opportunity Zones are federally designated census tracts where private investment gets tax advantages in exchange for long-term community engagement. Pittsburgh has over 20, including:

  • Hill District

  • Hazelwood

  • Homewood

  • Larimer

  • West End and parts of Wilkinsburg

State housing money is likely to stack with Opportunity Zone incentives, multiplying the impact of both.

Pittsburgh Housing Revitalization

How to Apply for Pittsburgh Housing Revitalization Dollars

Here’s how the process typically works for accessing funds from PHARE or the $50M restoration allocation:

1. Monitor Application Portals

The PA Housing Finance Agency (PHFA) will administer most funding. Watch for announcements and updates there.

2. Work with Local Groups

Organizations like Action Housing, Rebuilding Together Pittsburgh, and the Urban Redevelopment Authority (URA) often facilitate applications or match homeowners with programs.

3. Prepare Documentation

Applicants typically need to provide:

  • Proof of ownership

  • Contractor estimates

  • Photos of current property conditions

  • Income documentation (for grants)

  • Proof of code violations or deferred maintenance

4. Understand Approval Timelines

Funding must go through legislative approval. PHFA then issues RFPs (Requests for Proposals) and sets submission deadlines. Funds may not be available until late 2025 depending on budget passage.  Here’s PHFA’s 2024 RFP PDF as an example.

Risks and Considerations

Like all large-scale government initiatives, the Housing Action Plan comes with a few risks:

Delayed Rollout

Funds must be approved by the state legislature. This can take months, especially if budget debates stretch past summer.

Regulatory Red Tape

Historic property rules, building codes, and permitting timelines could delay progress even after approval.

Contractor Shortage

A skilled labor shortage in Pittsburgh’s construction sector could slow down projects, inflate rehab bids, and impact ROI.

Gentrification

Pittsburgh housing revitalization may drive up property values, which can result in displacement of low-income residents unless safeguards (like rent control or tax freezes) are put in place.

Community Input and Resident Protections

For Pittsburgh housing revitalization efforts to be successful, community voices must be heard. The Housing Action Plan invites feedback from local governments, nonprofits, and everyday residents through planning boards and stakeholder meetings.

Some common asks from the community include:

  • Tenant protections to prevent evictions during upgrades

  • Property tax freezes or relief programs for seniors and long-time homeowners

  • Giving funding priority to owner occupied homes instead of out of town developers

Ensuring local voices are involved will help Pittsburgh grow equitably without leaving current residents behind.

Resources for First Time Homebuyers

Revitalized neighborhoods will attract new buyers, but affordability remains a concern. That’s why the Housing Action Plan and local partners like the URA are investing in:

  • Down payment assistance

  • First-time homebuyer grants

  • Mortgage education and credit counseling

  • Low-interest loans for qualifying buyers

Combining these financial tools with revitalization funding can help new families build roots in previously overlooked areas especially in neighborhoods like Larimer, Knoxville, and Hazelwood.

Case Studies in Pittsburgh Revitalization

East Liberty

Once marked by high crime and vacancy, it is now a commercial center housing tech companies and retail. But housing affordability has lagged. Nonprofits and state programs are beginning to fill that gap.

Lawrenceville

Lawrenceville is one of the most sought after areas that has had a massive Pittsburgh housing revitalization, it began with small business investments and property restorations led by local developers, city planners, and historic preservationists.

These examples show how thoughtful planning combined with state and private investment can bring entire neighborhoods back to life.

Economic and Environmental Benefits

Economic Impact

Revitalization typically results in:

  • New local jobs in construction and home services

  • Increased property tax revenue for schools and infrastructure

  • Stabilization of property values in transitional areas

Environmental Upside

Many of these homes will be upgraded with:

  • Energy-efficient HVAC and windows

  • Lead paint and asbestos remediation

  • Stormwater control via green infrastructure

Sustainability is a key plank of the Shapiro administration’s development approach.

How Buys Houses Can Help

If your home needs major repairs or if you’ve inherited a distressed property waiting for state funding may not be realistic. At BuysHouses.co, we offer a fast, fair option.

We buy houses in as-is condition throughout Pittsburgh, including homes with:

  • Foundation or roof issues

  • Code violations

  • Long-term vacancy

  • Major plumbing or electrical needs

We are trusted local cash home buyers who understand the complexities of older Pittsburgh housing stock. If you’re ready to move forward without the wait and repairs, contact us now.  We are here to help Pittsburgh grow, one property at a time.

A Blueprint for Pittsburgh Housing Revitalization

The Shapiro administration’s Housing Action Plan represents a rare opportunity to restore Pittsburgh’s housing legacy while addressing modern affordability challenges.

With over $60 million in proposed funding, this initiative could revitalize entire neighborhoods, support long-time residents, and bring underutilized homes back to life.

For property owners, real estate investors, and anyone living in one of Pittsburgh’s transitional zones, now is the time to understand your options and take action.