Currently Reading

How Do Builders Move Forward Post-Pandemic?

Advertisement
Coronavirus Resources and Information

How Do Builders Move Forward Post-Pandemic?


May 7, 2020
Strategy planning on a game board to find the way forward
By Olivier Le Moal

The coronavirus pandemic is a national emergency no builder could have prepared for, but CohnReznick Director Steve Friedman advises that builders prepare themselves for the bumpy months ahead as the country rebuilds. Besides tightening up daily expenses, some tips he offers is to sell unsold properties and lease the models back to keep cash on hand, apply for loans, and not renew lots that builders do not plan to use in the near future. Once companies gain stability, they can start thinking forward about how their buyer demographics may change and the features those buyers will want in a new home. 

After nearly a decade of sluggish growth, the homebuilding market was finally looking up. The last quarter of 2019 was strong for homebuilders, as new household formations poked upward and contracts began flowing in for new homes. The first two months of 2020 were encouraging, and the industry was feeling confident that it could carry this momentum through the rest of the year. That optimism didn't last long.

With household formation and purchases both at a standstill, the coronavirus has shattered faith in the homebuilding market. A monthly confidence index of builder expectations compiled by the National Association of Home Builders fell from 72 down to 30, the largest monthly drop in the index’s 30-year history. Construction is ongoing in most markets, but once homebuilders exhaust the backlog of houses they have under contract, they could be waiting a long time for new business, according to CohnReznick Director Steve Friedman.

Read More
 

Related Stories

Housing Giants

The Supply Chain's Perfect Storm

Never before have home builders had to navigate a market where houses are pre-selling fast while the cost of so many resources is rising and so many supplies are constrained at the same time

Labor + Trade Relations

What Labor Shortage? Not All Home Builders Affected Equally

Why is it some builders aren’t feeling the labor crunch? Truth is, the trade shortage is a great opportunity for builders to establish a true competitive advantage

Business Management

Epcon’s Paul Hanson on the Supply Chain, Franchising, and Active Adult Demand

Paul Hanson, of Epcon Communities Franchising, talks about active adult demand and what it's like to be a franchise home builder amid supply chain constraints

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.