Quote:
Originally Posted by markson33
If Buncher, the Penguins, PMC et all keep adding projects, at what point will the market be saturated? I just wonder what the effect will be of all of these units come on line at the same time.
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Of course over the long term, there are feedback loops such that more residents will in turn lead to more of the things that are attracting residents to the core area in the first place (more jobs, more restaurants/bars, more amenities of other sorts, more walkable neighborhoods, and so on). I think it is worth worrying about certain particular issues where these feedback loops may be blocked for extraneous reasons (e.g., transit), but overall there is no obvious fundamental limit to the possible population growth of the core urban area, particularly if you don't artificially limit your definition of that area to the City of Pittsburgh itself.
But I take it your question is more about what sort of short term pace is sustainable. To some extent that pace is also subject to feedback, and I also think there are underlying trends that will if anything be accelerating the growth in potential demand. Still, at some point if you are building enough new units you are going to outpace potential demand growth, even with all these factors contributing.
I have no idea exactly what that pace would be, but I do think two things are fairly obvious given recent data and experience:
(1) Whatever that pace might be, we are currently nowhere near it;
(2) Reasonably conservative estimates of that pace likely have been recently requiring continual upward revision.
In fact we pretty much know (2) is true just from things like the recent redesigns of Bakery Square 2.0, the East Liberty Transit Center, and so on--smart, experienced players are clearly revising their short-term demand projections for residential units upward.
And that is more or less the point I was making. Even without knowing a current best guess for that maximum sustainable building pace, I am quite confident that older best guesses are now way too low. And if you look back at the history of things like Buncher's plan or the Penguin's plan, they are in fact getting pretty stale by now.