Did you know that Pennsylvania is among the top states plagued with staggering and economically crippling taxation?
Did you also know that beginning on January 1, 2020, the City of Pittsburgh will have the highest total combined real estate transfer tax rate in the US!?
This ordinance negatively impacts people in the City of Pittsburgh of all walks of life except the governing entities. However, the direct impact that this ordinance has falls on real estate buyers and sellers.
What should we expect to see?
We at PGH Property Buyer believe that it has the potential to slow economic movement and growth because it makes it more difficult and expensive for a seller to sell and a buyer to buy. This will likely trickle into rentals and leasing and upset the current balance of tenants, rental rates, and vacancies.
Our forecast expects to see an economic gridlock effect take place. We personally believe that these astronomical tax hikes incentivize families, developers, landlords, tenants, new and local small businesses, and investors to engage less in the City of Pittsburgh and engage more in the suburbs and boroughs surrounding the City of Pittsburgh.