The city of Pittsburgh proper isn't doing too well. Homestead is a few miles away, but you're right, development is better than abandonment. Visiting Homestead during the week and you get the impression it's one big parking lot, sprinkled with various store and restaurants. Visit it on the weekend and it's packed.
I don't live in Pgh, but I visit quite often and while downtown Pgh is kind of dead after 5:00 PM the surrounding area, like Homestead, Southside, the Strip (no, not that kind! /forums/images/graemlins/tongue.gif) District is hopping.