Moderate employment growth was the rule for most of the Mid-Atlantic region in 1999. Nonagricultural employment increased 1.2 percent, or by 155,700 jobs, from November 1998 to November 1999. Delaware led the region with a 2.8-percent rate of employment growth, followed by Virginia with a 2.4-percent increase. Steady job growth across the region resulted in declining unemployment rates for all States except West Virginia, which saw the rate increase to 6 percent in November 1999, compared with 5.8 percent in November 1998. Virginia reported the lowest unemployment rate (2.9 percent). Nonagricultural employment in Pennsylvania increased by 0.5 percent during the 12-month period ending in November 1999, and the unemployment rate remained almost unchanged at 4.3 percent. The greatest increases in Pennsylvania were in health and education services employment.

The Pittsburgh construction boom continues. More than $3.4 billion in commercial construction contracts was issued in 1999, and the volume is expected to rise in 2000. The largest construction project is the $645 million Monongahela River Locks and Dam project. Pittsburgh unveiled plans for a massive $480 million redevelopment of the Fifth-Forbes corridor in the downtown area. The goal is to transform the heart of downtown into a mix of shops and restaurants. Construction activities and retailer commitments continue at The Waterfront, a $300 million mixed-use development being built just outside the city limits. When the development is completed, its commercial and retail firms are estimated to employ more than 4,000 persons.

Mid-Atlantic single-family building permits totaled 109,600 homes in 1999, a 3.7-percent increase over 1998. Multifamily activity totaled 24,183 units, down less than 8 percent from 1998. Virginia was the only State to record an increase in multifamily activity. The largest share of all residential construction in the region continued to be in Virginia, which recorded nearly 40 percent of all the units issued permits. Pennsylvania recorded a decline in multifamily units, but permit activity was up in the Philadelphia (18 percent) and Pittsburgh (13 percent) areas.

The existing home sales activity in the Mid-Atlantic, as reported by the NATIONAL ASSOCIATION OF REALTORS^®, was up 6 percent in 1999 to 468,400 homes (excluding Delaware, for which data are not available). The greatest increase was 11 percent in Maryland, followed by 10 percent in Virginia. The thriving economy in Northern Virginia continued to stimulate housing demand in the Washington, D.C., metropolitan area. Sales of existing homes for 1999 totaled some 55,500, up 12 percent. More than 30,000 new homes were sold in 1999, up 3 percent from a very strong 1998. The median sales price for existing homes in the Washington area was $176,500, and prices ranged from a high of $214,000 in Alexandria to $139,900 in the District of Columbia. The annual rate of home sales in the District of Columbia has nearly doubled since 1996, to 13,800 homes in 1999.

Concord Township in Delaware County has been an active area for high-end residential building in the Philadelphia metropolitan area. That area has experienced a surge in new construction since 1996, when a new sewer system was completed. Nearly 400 single-family homes have been completed since then, and 858 homes in 5 subdivisions are in the pipeline. Homes are selling in the mid-$300,000 range. Construction is scheduled to begin next year for 636 apartment units, with 2-bedroom rents ranging from $1,137 to $1,428.

Most of the rental housing markets in the Mid-Atlantic's major metropolitan areas are balanced too tight. The Pittsburgh market has become more competitive since several large upscale projects were completed. The Northern Virginia suburban market continues to be tight, with demand far exceeding supply. According to the market research firm Delta Associates, the rental vacancy rate for Class A apartments as of third-quarter 1999 was less than 1 percent, and rents have increased approximately 7 percent in the past 12 months. Some of the market tightness in Northern Virginia will be alleviated if the more than 13,000 units currently in the pipeline are built in the near future.

The Federal Home Loan Bank of Pittsburgh awarded $6.15 million in grants to 29 multifamily housing projects targeted to low-income households in Pennsylvania, West Virginia, and Delaware. Fifteen projects are for elderly persons, six for families, and the remainder for special-purpose facilities including housing for single parents, abused women, homeless persons, and persons with disabilities.

Spotlight on Wilmington-Newark, Delaware-Maryland

The Wilmington area has become one of the Nation's largest credit card accounting centers, providing employment for thousands of residents. The metropolitan area had a population of 565,329 persons as of July 1998, a 12-percent increase since the 1990 census. Population of the city of Wilmington increased very slightly since 1990 to 71,678 in 1998. Employment growth in the metropolitan area has been strong, averaging more than 2.5 percent annually since 1994. In the 12 months ending in November 1999, total nonagricultural employment in the area was 2.9 percent above the previous 12-month period, and the unemployment rate fell to 2.8 percent.

Services constitute the major employment sector in the metropolitan area, with more than 96,000 jobs, or 29 percent of total employment. Finance, insurance, and real estate account for 44,800 jobs. Financial institutions, including banks and credit card issuers, are some of the largest employers in the private sector. The metropolitan area's second-largest employer, Maryland Bank of North America (MBNA), employs 10,400 persons. Manufacturing, particularly chemicals, pharmaceuticals, and automobile assembly, is still an important part of the local economy, accounting for 14 percent of total employment in the area. DuPont remains the metropolitan area's largest employer, with 12,900 employees. AstraZeneca, which produces pharmaceuticals and specialty chemicals, has 4,000 employees and recently announced plans for expansion and construction of the company's North American headquarters in north Wilmington. The expansion will add 2,500 jobs during the next few years.

The city of Wilmington's downtown has undergone a renaissance, with the recent construction of the MBNA Building and the Wilmington Trust office tower. The vacancy rate for downtown office space is the lowest since 1987, falling from almost 30 percent in 1991 to about 9 percent currently. Vacancy rates for Class A buildings range from 1 to 5 percent. Several projects are in the development stages, including an office tower to be built by First USA Bank, a $130 million State courthouse, and a $40 million hotel near the Riverfront Arts Center.

During the 1990s, single-family building permits have been relatively stable, averaging approximately 3,000 homes annually in the metropolitan area. Demand for single-family detached homes is strongest in the $140,000 to $200,000 price range and for townhouses in the $80,000 to $130,000 range. Townhouses account for 25 percent of single-family activity. Existing home sales were very healthy in 1999. The median sales price for 1999, according to the NATIONAL ASSOCIATION OF REALTORS^®, was $120,600. Based on local sales data, the median sales price ranged from $149,000 in New Castle County to $120,000 in Cecil County. The median sales price in the city of Wilmington in 1999 was approximately $128,000.

The market for rental housing has returned to a balanced condition, and demand for new units has increased. Three multifamily rental projects are under way in downtown Wilmington as developers attempt to meet the growing need for apartment space, and the city aims to meet its goal for 300 new apartment units in the next 5 years. Quaker Village is being financed through the Federal Home Loan Bank with 4-percent tax-exempt bonds. This 55-unit mixed-income development will have 80 percent of its units set aside for low-income tenants, with the remaining 20 percent available for market-rate tenants. Contract rent levels for 2-bedroom units will be $625 for low-income households and $675 for market-rate tenants. The development is scheduled for completion in fall 2000. The second development in the pipeline is phase one of a six-block historic renovation in Wilmington's Market Street Ship's Tavern District. The project will consist of 90 1- and 2-bedroom units above approximately 30,000 square feet of street-level retail space. Rental rates for 2-bedroom units will be $1,100. Construction is scheduled to begin in spring 2000 and take 12 months. The Nemours building, formerly a DuPont office building, is planned for renovation into 150 apartments with retail/office space, beginning early in 2000 and also taking about 12 months to complete.