So developers for the old G.C. Murphy building near Market Square have announced they would like convert the building into apartments instead of condos. Nothing too shocking there, but there’s this:

The apartments would target people with incomes of $40,000 to $50,000 a year, including Downtown workers and recent college graduates.

The average apartment would feature about 1,100 square feet, with rents running “much less” than $1.50 a square foot, Mr. Piatt said. Most apartments would be 1 1/2– to two-bedroom units, although studios and three bedrooms also would be available.

Come again?

Let’s do the math, shall we?

1,100 * $1.50 = $1,650 in rent per month.
$1,650 * 12 months = $19,800 per year

Note: no mention of parking access. If garage space is not included, factor in roughly $2,400 per year for a parking lease.

So we’re at $21,200 per year for housing and parking. No word on whether utilities would be included in the rental fees.

So I’m a single college graduate, making, say, $45,000 per year. After taxes, I’ll have $37,500 in my pocket. My housing costs would be 56% of my take home pay.

Now, I can certainly see someone making considerably more than $45,000 in salary deciding to rent a 1,100 square foot apartment in the heart of downtown Pittsburgh. That makes perfect sense. But say that your target demographic is college grads making up to $50,000 a year? I don’t get it.

Posted on 30 November 2006