According to the Federal Reserve, the Philadelphia area has seen more new construction over the past three months than it has in the first quarter of any year since 2008. Though the overall growth of the real estate industry was pretty much as expected, the flurry of new residential construction is significant.
The new construction going up is also smaller, cheaper, and "more urban," which we assume means within city limits (not in the suburbs.) The report did say that commercial real estate hadn't experienced much of a change, but that there was enough new residential construction to make up for it.
We've seen that neighborhoods like Kensington, Fishtown, Point Breeze, and the Graduate Hospital are experiencing surges of new construction, and we expect that there will be more new residential construction to come.
· Beige Book, April 17th [Federal Reserve]