flexiblefullpage - default
Currently Reading

How Long Will the Pandemic Delay Housing Construction?

billboard - default

How Long Will the Pandemic Delay Housing Construction?

May 8, 2020
Builder sitting down
By Tomasz Zajda

Housing demand may be bouncing back, but builders will still face major hurdles in the coming months as they try to regain their pre-coronavirus speed. It won’t be as easy as everything snapping back into place once a state reopens: Local offices may slow down processing permits, the supply chain may delay materials , and until there is a vaccine or a reliable treatment, breaks in the construction labor force will always be at risk, according to a housing expert from the Joint Center for Housing Studies of Harvard University. Even after the economies reopen, construction sites will likely have to continue social distancing and other safety precautions that slow down production but keep workers safe. 

COVID-19 will have many effects on housing markets in the coming weeks and years. One of the near-term consequences of the spread of and response to the virus is likely to be delayed construction due to office closures, construction moratoria, supply chain disruptions, and risks to the labor force.

Before the pandemic, multifamily housing construction was booming, with a new cycle high of 403,000 starts in 2019. Single-family construction had remained depressed since the last recession, with 12 straight years of starts under 1 million, but were growing, albeit slowly, over the last eight years, reaching 888,000 starts in 2019. The construction pipeline was also robust with 1.2 million units currently under construction, including 652,000 units in multifamily buildings. The housing market was set to have some big completion numbers in coming years, but delays in construction mean those numbers almost certainly will be lower than expected.

There are four immediate reasons why projects might take longer because of the pandemic, and the extent that each of these might delay construction varies widely by jurisdiction:

Read More

leaderboard2 - default

Related Stories

Housing Markets

4 Cities Where Housing Inventory Now Exceeds Pre-Pandemic Levels

San Antonio leads with the greatest surge in the number of homes available post-pandemic


Aging in Place: My Aunt Nancy’s New ADU

An apartment addition for an accessory dwelling unit to allow a family member to age in place presents several challenges and lessons learned for both the homeowners and contractor alike

Housing Markets

Average Homebuyer Income Increased Considerably in 'Pandemic Boomtowns'

Remote workers moving to Boise, for example, have raised the average annual income of homebuyers by 24%, to $98,000

boombox1 -
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

native2 - default
halfpage1 -

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
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.