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

Business Management

This Builder Transformed His Business By Switching Markets

Sublime Homes CEO Mike Graniczny was presented with an opportunity to switch markets and he took it. It transformed his business from closing on…

Leadership

Business Success: Easy as 1, 2, 3?

Great leadership essentials to turn your business around

Business Management

4 Ways to Reduce Construction Costs

2020 has been a roller-coaster ride. To combat rising construction prices, it's time for builders to look for new ways to cut expenses

Advertisement

More in Category




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.