When the October report on New Construction came out the news reported that October was the worst month in 16 years for new construction. However buried in the report is some good news for Center City real estate — condo and apartment construction is up 44%!
Why is this important?
New construction rates is a good predictor of the health of the market. If developers feel the market will go up, they will put their money in the market and build. If they think the market is overvalued and will go down, new construction will decrease.
In Center City Philadelphia virtually all new construction in Center City is multi-family, so its the multi-family construction numbers that matter. And with an upward trend of 44% the long term trend looks good!