East Liberty
How decades of shifting urban and housing policy manifest in a Pittsburgh neighborhood
How decades of shifting urban and housing policy manifest in a Pittsburgh neighborhood
This is an examination of East Liberty, a neighborhood in Pittsburgh, Pennsylvania, as a case study of how decades of shifting urban and housing policy have manifested in an urban neighborhood over time.
In Figure 1 (right), East Liberty is highlighted in green, while Downtown is highlighted in red.
East Liberty is home to 6,059 people as of the 2014-2018 ACS 5-year estimates (University Center for Social and Urban Research 2020).
East Liberty is in Pittsburgh’s East End, and is bordered by the following neighborhoods: Highland Park and Morningside to the north, Stanton Heights to the northwest, Garfield and Friendship to the west, Shadyside to the south, and Larimer to the east. This area is diverse—Garfield, East Liberty, and Larimer have historically been poorer Black neighborhoods, while Friendship, Shadyside, and Highland Park have been wealthier, White neighborhoods.
Historically, East Liberty had been a rural outpost along the Forbes Road (Figure 2, right) between Fort Duquesne (present-day Downtown Pittsburgh) and more developed settlements to the east (Pittsburgh Neighborhood Alliance 1977). By the 1800s it had become a fashionable country destination for Pittsburgh’s well-to-do elites. The Pennsylvania Railroad linked the area with Downtown in 1860, and it was annexed into the city in 1868. Around the turn of the 20th century, East Liberty ranked among the wealthiest suburbs in the nation, home to names including Carnegie, Heinz, Mellon, and Westinghouse (East Liberty Development Inc., n.d.). Later, it developed into a bustling urban neighborhood.
At its peak in the 1950s (Figure 3, right), it boasted more than 500 businesses and was the third-largest commercial district in the state of Pennsylvania, behind Center City Philadelphia and Downtown Pittsburgh (Dept. of City Planning 2012).
After a failed midcentury attempt to revitalize the neighborhood through urban renewal (Figure 4, right), East Liberty entered a state of decline, becoming known for drugs and crime rather than a thriving commercial center.
By 1980, the neighborhood lost half its population (Dept. of City Planning 2012).
In the 2000s, the neighborhood's fortunes began to turn around, and what was once a disinvested urban center plagued by poverty has become the trendy spot to be. Between the 2009-2013 and 2014-2018 ACS 5-year estimates, the white population increased by nearly 57%, while the Black population declined nearly 24%.
Over that same period, the population with a bachelor's degree increased by 98% and with a graduate/professional degree by 152%. Housing for low-income residents (Figure 5, right) has been vacated for chic restaurants and Whole Foods and more than one juice bar to take its place.
As new, high-end development has proliferated, fears of displacement have created tensions among the community about who the neighborhood is for, and whether those who lived in East Liberty during its darkest days are still welcome.
The aim of this study is to better understand how policy choices led to the decline and subsequent rebound of East Liberty (Figure 6, right).
In 1937, a Home Owners' Loan Corporation map (Figure 7, right) indicating the relative security of residential neighborhoods for mortgage lending gave East Liberty the lowest grade, D, and shaded it in red.
The corresponding area description form (Figure 8, right) indicates that while Area No. D8 (East Liberty) boasted good transportation and proximity to employment, it suffered from "obsolescence", poorly maintained structures, and a "lower class populace". It goes on to elaborate that the neighborhood was under threat of being "infiltrated" by "Italian-negro" populations and was thus on a downward trend of desirability.
By giving East Liberty a D grade and shading it in red, HOLC sent the message to mortgage lenders that the neighborhood was too risky for their investment. This starved the community of the financial resources necessary to help it improve the conditions noted in the 1937 evaluation, all but guaranteeing that East Liberty would decline even further.
Neighborhoods that were redlined on HOLC maps in the 1930s are more likely to be racially segregated, with lower rates of homeownership, property values, and resident credit scores (Aaronson et. al. 2021). Residents often have less access to opportunities and thus less social and economic mobility. The effects of HOLC maps persist into the present era, and help to perpetuate much of the inequities that manifest in East Liberty today.
Within a decade of losing access to capital investment, the focus of government housing policy shifted away from urban neighborhoods like East Liberty and towards greener suburban pastures.
Desperate to reverse trends of businesses and residents fleeing to newly developed suburbs, civic leaders embraced urban renewal, approving a plan in 1962 that put forth a $100 million project to transform the neighborhood. Major components of the new vision for East Liberty revolved around construction of new roadways and new housing (Figure 9, right).
This caused massive upheaval for the communities of residents and businesses that called East Liberty home. Bulldozers rolled into East Liberty and destroyed 1,200 homes and one million square feet of commercial space in an effort to usher in an era of modernity (Figure 10, right; Fitzpatrick 2000).
In an attempt to accommodate the population that would be displaced, a section of the 1966 Modification #2 to the Redevelopment Area Plan was devoted to where these residents could seek relocation housing (Urban Redevelopment Authority 1966). None of it was in East Liberty—it mentions new housing developments that would soon be completed in East Hills (purple) and Sheraden (blue). As shown in Figure 11 (right), both of these communities are on the city’s urban fringe, and Sheraden is in the West End—on the other side of town entirely.
Fear of losing businesses and shoppers to new suburban shopping centers led civic leaders to take drastic steps to make East Liberty's commercial core competitive with the malls. Since the car was becoming king in American cities, East Liberty would need to offer easy access to motorists, with abundant parking. This resulted in construction of a wide one-way, high-speed ring road (Penn Circle) around the business district, and conversion of Penn Avenue into a pedestrian mall (Figure 12, right).
Ultimately, this did not have the desired effect of bringing suburban shoppers to support local businesses. Not only was it not an inviting environment for business, but it made it more difficult, not less, for motorists to access the commercial district, and much easier for them to simply drive around East Liberty rather than to or through it (Figure 13, right).
This only hastened the decline of the neighborhood, as it threatened the livelihoods of the businesses that survived the urban renewal process. East Liberty became known as a center for crime and blight.
Now, decades later, the city is working to reduce the impacts of urban renewal. The pedestrian mall has been eliminated and Penn Avenue has reopened to traffic (Figure 14, right; red). Penn Circle has been partially converted back to two-way traffic (plans to convert the remaining portions are in development), and they have all been renamed:
Along with the new road “improvements”, the urban renewal plan called for the development of new housing in East Liberty (Figure 15, right). This came in the form of three high-rise housing towers, as well as two lower-rise apartment complexes. The three high-rise towers were intended to serve as anchors of the community and were built at either end of the Penn Avenue pedestrian mall.
Built between 1969 and 1971, the high-rises were not originally intended to primarily house low- and moderate-income families. However, the developer, Florida-based Federal American Properties, took advantage of the then-new Section 236 mortgage-based subsidy program to build the East Mall and Penn Circle Towers. In the 1970s, all three complexes joined the HUD-Assisted Multi-Family Housing program (Lord 2003). While the public perception was that the three towers were public housing, a notion perpetuated by media coverage that referred to them as such, they were privately owned and operated (Santoni 2009). Liberty Park was only partially subsidized, and included more than 100 market-rate units. The three towers were as follows:
Figure 16 (right) shows Liberty Park and Penn Circle Towers among the East Liberty skyline.
Two lower-rise complexes were built as part of the urban renewal project on the western edge of the neighborhood, and have persisted into the modern era without the stigma associated with the high-rise towers. Both were built at the intersection of Penn and North Negley Avenues.
Pennley Park Apartments (Figure 17, right) opened in phases starting in 1965 on the northeast corner, eventually encompassing 314 units in total (Fagan 1997, Johnson 1964).
The second, Penn Plaza, featured 312 units on the southeast corner (Post-Gazette 1966). Opened in December 1966, it received an FHA-backed mortgage in 1968 (Post-Gazette 1968).
As urban renewal razed a bustling neighborhood (Figure 18, right) and built new roadways and subsidized housing in its place, the neighborhood continued its decline. As time went on, those with the means to move elsewhere did, and the towers became home to the poorest of the poor. In effect, the “revitalization” of East Liberty served to create the conditions for concentrated poverty, all but ensuring that the neighborhood was set up for failure.
Like with the roadways, in more recent years the city has sought to redevelop the community in an attempt to undo some of the effects of urban renewal on the neighborhood with regard to housing. Those efforts will be discussed in more detail later.
In an effort to reestablish East Liberty as a regional retail destination, city officials sought to compete with the suburbs with a similar style of store: big box retail. The first store to open was a Home Depot (Figure 19, right), replacing a long-vacant Sears location at Penn Circle North & Highland Avenue. Opened in 2000, its announcement was hailed as a “catalyst for revitalization” (Karamcheti 1998).
In the southern end of East Liberty, adjacent to affluent Shadyside, the big-box trend continued with the opening of the region’s first Whole Foods Market in 2002 in a new development called Eastside (Figure 20, right). As the name suggests, the intent was to bridge the gap between the two neighboring communities. The addition of big-name, big-box retail worked, and the neighborhood began to shift its image away from one of crime- and drug-ridden subsidized housing towers and toward one of a revitalized retail destination.
Along with the influx of new retail, East Liberty has seen adaptive reuse of historic structures in its revitalization. The most notable example is Bakery Square (Figure 21, right), a former Nabisco factory that operated from 1918 until 1998. (Bakery Square, n.d.) The city declared the property as blighted in 2006 and set the stage for redevelopment: a local developer bought the bakery and converted it into a mixed-use development, opened 2010, featuring office space, retail, a hotel, and apartments. Further expansions have added additional office space, apartments, townhomes, and parking facilities. The largest tenant of the office space at Bakery Square is Google.
Following the collapse of the steel industry in the 1980s, Pittsburgh sought to reinvent itself, and built the foundation for its future around the strengths of its major universities: the University of Pittsburgh (education and healthcare) and Carnegie Mellon University (technology, engineering, and robotics). As a result, the city has spawned a number of technology startups and major tech players have also opened offices in Pittsburgh, including Google, Facebook, Uber, and Amazon.
As it has redeveloped, East Liberty has become a hub for the local tech industry, and is home to Google’s Pittsburgh office as well as the headquarters for the language-learning app Duolingo (Figure 22, right).
By the early 2000s, the high-rise towers were in such a state of disrepair, many members of the community saw their demolition as critical for redevelopment of the neighborhood and shedding of the stigma associated with the towers (Figure 23, right).
For years, residents had sought new management. They organized, forming a group called the Coalition of Organized Residents in East Liberty (COR), and approached The Community Builders (TCB), a developer specializing in the redevelopment of distressed housing (Lord 2003). TCB purchased East Mall and Penn Circle in 2001, and planned to buy Liberty Park. However, before Liberty Park could move forward, HUD foreclosed on the property in 2003, alleging substantially degraded living conditions. In the process, it revoked the property’s operating subsidy and replaced it with Section 8 vouchers. It ultimately transferred ownership to the Urban Redevelopment Authority of Pittsburgh (URA), which quickly sold them to TCB.
With the properties controlled by the developer (and out of the hands of Federal American), plans for redevelopment could move forward.
In 2005, the East Mall and Liberty Park towers were demolished, along with the Liberty Park townhomes (Figure 24, right).
Subsequent developments in the area tried to counteract the concentration of poverty that resulted from the high-rises. They focused on smaller buildings than the towers: low-rise complexes and garden apartments, as well as townhomes. They also emphasized mixed-income housing and a higher quality of construction.
In place of East Mall, three housing developments have been constructed: East Liberty Place North (Figure 25, right), East Liberty Place South, and Penn Manor. All were partially funded by low-income housing tax credits. East Liberty Place North & South are both mixed-use, mixed-income developments. East Liberty Place North contains 6 retail spaces and 54 apartments, 38 of which are affordable (Nelson Jones 2013). East Liberty Place South has 11,000 square feet of retail and 52 apartments, of which two-thirds will be affordable. Penn Manor contains 55 units, all affordable.
The Liberty Park site was developed into Fairfield (Figure 26, right), a mixed income apartment and townhouse complex (Nelson Jones 2007). Opened in 2007, it includes 124 units, mostly for low-income residents. Fairfield was developed with Low Income Housing Tax Credits.
The last of the towers to come down was Penn Circle, imploded in 2009 (Figure 27, right).
The site is now a Target store, which opened in 2011.
When the owners of the Pennley Park Apartments (Figure 28, right) defaulted on the property’s HUD-insured mortgage in 1997, HUD foreclosed on the property and transferred ownership of the property to the Urban Redevelopment Authority of Pittsburgh (URA), which in turn transferred it to a partnership of The Community Builders and East Liberty Development, Inc. (ELDI), the neighborhood’s community and economic development organization.
In the late 1990s and early 2000s, the Pennley Park Apartments were rebuilt and renovated as a new, mixed-income apartment and townhouse complex known as New Pennley Place (Figure 29, right; Ove 1997).
The project involved the addition of new amenities like a community center, and reconnecting streets severed by the original construction. Old buildings received new facades to make them more harmonious with both the street and the new buildings in the development. 130 units were demolished without replacement, in order to reduce the site’s density (Barnes 1997).
Though it appears to have started on a rocky footing, the effort involved significant community input, and other communities pointed to it as a model for input on other future redevelopment projects (McNulty 1998, Toler 2002).
The project was completed in phases. Phase 1 renovated 64 apartments and added 38 townhomes, and won an award from National Association of Home Builders for Best Multi-Family Rehabilitation. Phase 2 added 34 townhouses and apartments. Phase 3, dubbed “Pennley Commons” added a 3-story, 38-unit senior apartment building, funded by HUD’s Section 202 Capital advance program (Ackerman 2000).
In addition to the Section 202 funding, New Pennley Place was partially funded by the sale of Low-Income Housing Tax Credits, and receives project-based assistance from HUD. It had previously accepted Section 8 vouchers until 1994, though it is unclear if it currently does (Heltzel 1994).
New Pennley Place is one positive example of how affordable housing was maintained and renovated in East Liberty, using new mechanisms to transform a rundown apartment complex into a mixed-income community (Figure 30, right).
In contrast to the redevelopment of Pennley Park into New Pennley Place, its urban renewal sister project and neighbor across the street Penn Plaza has become a symbol of gentrification and displacement in East Liberty and Pittsburgh as a whole, serving to galvanize community opposition to the swift changes that were taking place in East Liberty.
In 2015, residents at Penn Plaza received 90-day eviction notices. The City of Pittsburgh intervened, negotiating more time for residents to find new housing. By 2017, more than 200 residents had relocated, some many miles away from East Liberty (Vrabel 2018). Many residents were elderly, and some relied on Section 8 vouchers to pay their rent (Deto 2015). Penn Plaza did not receive project-based assistance, and was a source of “naturally occurring affordable housing”, charging below-market rates. The owners of Penn Plaza, LG Realty Advisors, sought to redevelop the land into a high-end retail and office complex anchored by a Whole Foods Market (Figure 31, right). While negotiations between residents, city officials, and the developers stalled the project for a few years, the buildings were demolished in 2017. Whole Foods pulled out of the development in 2017 amid the controversy, but rejoined the project in 2019 (90.5 WESA 2019). The store opened in 2022.
Though it was not the largest loss of affordable housing in the area, the demolition of Penn Plaza came at a time of rising tensions around who was welcome in East Liberty, and for whom the “new” neighborhood would be built moving forward (Figure 32, right). It certainly did not help that the anchor tenant was a supermarket known for its high prices and catering to a highly upscale and affluent demographic—the opposite of Penn Plaza.
In a vein more similar to Pennley Park than Penn Plaza, the East Liberty Gardens complex (Figure 33, right) and Hamilton-Larimer public housing in the adjacent Larimer neighborhood were redeveloped into a new mixed-income community as part of a HUD Choice Neighborhoods project.
East Liberty Gardens was a 136-unit townhouse complex developed for low-income families by a group of local churches (Post-Gazette October 1968). Financed through the FHA’s Section 221(d)(3) program in 1967, it suffered from maintenance issues and neglect (Post-Gazette 1967, Gemperlein 1979, Haynes 1995).
Hamilton-Larimer was a 28-unit public housing project opened in 1963 in neighboring Larimer (Post-Gazette 1963). In 2002, the Housing Authority of the City of Pittsburgh was awarded a $1.6 million HOPE VI demolition grant for Hamilton-Larimer, though the redevelopment never occurred. (HUD 2004)
The City and the housing authority received a $30 million HUD grant to develop 334 units of mixed-income housing on the border between East Liberty and Larimer (Figure 34, right). The site features extensive green infrastructure as well as a 25 acre park. The initiative also includes homeowner assistance in the form of a facade enhancement program for Larimer homeowners to upgrade their properties to blend in with the new development.
Choice Neighborhoods is a new program from HUD, the successor to HOPE VI, aiming to create thriving mixed-income communities through holistic community planning. It represents the next step in HUD’s evolution away from high-rise public housing and the concentration of poverty.
Alongside efforts to redevelop old subsidized housing, the neighborhood is experiencing a loss of “naturally occurring affordable housing”, or housing that is affordable without government subsidy, as properties change hands and new owners opt to charge market rents instead. At a small apartment building on Rippey Street (Figure 35, right) recently sold by ELDI, “one man said he’d moved four times in the last three years as the East Liberty apartments he lived in changed hands” (Krauss 2022).
In 2015, around the time Penn Plaza residents were receiving eviction notices, on the other side of East Liberty the Eastside Bond complex had its grand opening (Figure 36, right). A transit-oriented development abutting the East Liberty BRT station, it features 360 apartments, all market rate.
As of November 2022, pricing is as follows: a studio unit rents from: $1,592-$1,789 per month; a 1 bedroom is $1,902-$3,461, and a 2 bedroom rents for between $2,408-$4,650 (Apartments.com 2022). The 2021 area median income for a family of 4 in the Pittsburgh MSA was $84,800, thus making an Eastside Bond two-bedroom unit unaffordable to the median family in the area. This reflects the trend of developers building almost exclusively “luxury” housing, with very little affordable to the average citizen.
Aggregating sales data from Zillow over the past three years (2019-2022), the market for homebuyers has gotten considerably more expensive over this period (Figure 37, right).
The median sales price jumped from $275,000 in 2020 (55 sales) to $330,000 so far in 2022 (55 sales as of December 5, 2022). The median price for 2019 was $251,500, though this figure is only reflective of 9 sales. In 2022, the median property was in the market for only 13 days. Average sales prices from all years except 2019, when data was limited, were quite a bit higher than the medians, likely skewed somewhat by newer construction homes fetching premium prices with their modern amenities.
As the city’s tech economy has grown, many of those tech workers have flocked to the area in search of urban amenities and short commutes to the office. The influx of these highly-paid workers has caused great demand for housing, and these newcomers who can afford to pay more have begun to price out existing residents from the neighborhood as rents and sale prices have increased (Figure 38, right).
At the same time, as East Liberty has undergone a significant transformation over the past 20 years, much of its affordable housing stock has been redeveloped. But, with each redevelopment project, many residents have been displaced—some repeatedly. Digging through newspaper archives researching these projects, one stumbles across instances of residents experiencing displacement after displacement. Many could not find local replacement housing and were forced to leave East Liberty. Some had to move far away, outside of the city and away from their families and social networks. Some did so only to have their new homes in different neighborhoods redeveloped (or deemed uninhabitable by HUD), displacing them yet again (Morrow 2017). It all begs the question—who is East Liberty for? Significant amounts of new housing are being constructed all over East Liberty, but only the privileged few are able to afford it.
Since the 1950s, East Liberty has seen so many different eras of housing and urban policy, including (but not limited to) urban renewal, development of subsidized housing through HUD’s Section 221(d)(3), Section 236, and Section 8 programs. It has seen the reevaluation of those policy choices and reinvestment through later development iterations including the Low Income Housing Tax Credit, as well as the Section 202 and Choice Neighborhoods programs. It has seen decline, redevelopment, gentrification, and displacement, including the use of policy tools such as attracting big-box retail and adaptive reuse of existing historic structures. For these reasons, East Liberty is an ideal neighborhood to study the effects that these policies have had, because East Liberty has seen it all.