PHILADELPHIA, PA

Philadelphia has struggled to recover from the COVID-19 pandemic, although the market is making gains. Job postings have increased across the state as has the number of construction workers.

Unemployment, however, remains higher than before the pandemic. As the South and West assert themselves as centers of growth, young people are increasingly moving away from the East Coast. This causes the population to both age and shrink. COVID-19 did not cause this trend, but rather accelerated it. Rising housing costs and labor shortages have also made it harder for young people to find their footing.  

Even so, the construction industry made gains over the last two years. This was primarily due to the residential sector growing in 2021, and it is expected to remain above average for the next two years. This should provide some respite for the industry, and the number of trade workers has increased to keep pace. Philadelphia also stands to benefit from the potential reshoring of manufacturing, as it is a city with cheap land, abundant labor, and a low cost of living. However, since the onset of the Covid-19 pandemic, record-high construction costs and delays have plagued the development and homebuilding industries. We expect that construction costs may escalate as high as 14% this year and relief will only occur next year. 

* Other structures include religious buildings, amusement, government communications, and public recreation projects.