Last week's stock market rebound came as a mixed blessing for construction. To the extent that the 650-point rise gives corporations more working capital and consumers better savings, the uptick was good; however, the catalyst for the rebound was primarily the signal from the Federal Reserve that it would remain patient about raising interest rates. While good news for borrowers, the extended low rate environment chases investors into higher risks than they are comfortable taking. That's good for the short term but dangerous for the long term. It's how we get bubbles, at least when there are shaky fundamentals behind the bubble.

One segment that is getting more bubble-like is the apartment market. Demographics and rent appreciation are still supporting more apartment development but it's becoming clearer that lenders are getting wary of the supply. With about 5,000 units coming online now and in the next 18 months - and with another 3,000+ in the pipeline - apartments are a segment that bears watching. For now the fundamentals are supportive. Employment in the region is high; wages are growing; the number of workers under 35 is growing.

Project News 

One apartment project in the news is the first phase of the Strip District riverfront redevelopment being undertaken by the Buncher Co. The master developer selected NP Group from Cleveland to handle development of the first phase of 400 units in the Strip. NRP is currently building 319 units in Warrendale call the Ascent.

 In bidding news, Montour School District opened bids last week for its $40 million new K-4 center. Bethel Park took bids on its new fire station. See more information about projects at BuildingPittsburgh. The PJDick/Hunt team was selected by WVU for the $30 million renovations to the Milan Puskar Stadium. WVU also prequalified Landau, March-Westin, Mascaro, Massaro, PJ Dick & Rycon for the $11 million Law Center renovation.

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