How East Liberty fought its vacant-property problem

East Liberty Development Inc. learned the hard way about how not to revive the housing market in Pittsburgh's East Liberty neighborhood.

The Pittsburgh Post-Gazette reports that a decade ago, the organization was stymied when it built 10 houses on one street and then was unable to sell even one of them. Since then, says the paper, the group has settled upon tactics that are bringing success.

Among them: 

• A "mothball" strategy of buying all tax-delinquent, vacant properties as they became available at city treasurer's sale and holding them off the market until they could be reused to improve the neighborhood. 

• Rehabilitating houses it acquires and reselling them; selling other houses to buyers interested in doing the rehab work themselves; and doing targeted development, which includes building new homes and offering them as affordable housing or selling them at market prices.

"The median value of housing climbed to $69,000 in 2008, nearly 34 percent higher than values reported in the 2000," reflecting the organization's success, the paper reports. A large drop in the crime rate and the arrival of new retailers have contributed to the turnaround.

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