Pittsburgh Homebuilding Report issued its research on the housing market in the six-county metro area this week. The report was unsurprising in that year-over-year growth in single-family detached homes was muted by lot inventory to 4.4%. There was a steep decline in multi-family starts but that is more a matter of timing than a change in direction of the market. With what is in the pipeline, it is expected that permits for apartments/condos will reach the 2,000 units mark again in 2018. The surprise was the 36.1% drop in attached single-family permits. This segment of the market has grown steadily over the past decade, as demographics and topography made townhouses and quads more desirable. This category has produced roughly 900-1,000 units during recent years. It’s unlikely that there will be a two-fold jump in townhouse construction during the last six months. Overall, the market was off by almost 800 units, or more than 30%.
One of the major projects in the apartment pipeline, the second phase of the Riverfront development being built by NRP, is out to bid for subcontractors, due July 27. According to the description at the NRP Construction website this phase will include 442 apartments in two buildings, plus a 544-space garage. In today’s market, that should be in the $55 million range.
Turner Construction was selected as construction manager for the $240 million UPMC Hillman/Shadyside Hospital expansion. That wraps up the CM selections for the major UPMC capitol program. To recap: PJ Dick/Whiting Turner will build the Transplant and Heart Hospital at Presbyterian. Mascaro/Barton Malow is CM for the Vision and Rehabilitation Hospital at Mercy. Rycon/Skanska will build the UPMC South Hills Hospital.