Right now, builders are confronting supply shortages and drops in demand as the coronavirus has brought many American’s daily lives to a grinding halt. But Brad Hunter, the managing director at RCLCO, says that builders must confront these immediate challenges while also thinking about what lies ahead. From new fiscal policy, the stock market’s long-term impact on consumer spending, and the virus’ possible resurgence later in the year, keeping the big picture in mind can help builders take steps today that will better prepare them for the coronavirus’ future blows.
The real estate industry is being clobbered by the coronavirus, and it’s going to get worse before it gets better. The effects on real estate will vary by sector and market, and the extent of the effects will depend upon the duration of the economic shutdown.
The sectors of real estate that have been hit hardest so far are hotels, restaurants, bars and other entertainment retail (particularly in tourist-driven areas) followed closely by retail and housing (particularly second-home and luxury homes).
Supplies that the builders and developers need are being interrupted more and more as workers stay home, and due to business shutdowns, quarantines and curfews. Huge numbers of layoffs will lead to further contraction in consumer spending, starting a downward spiral of economic activity. Together, these forces are already pushing the economy into recession.
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
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
What Now for Residential Construction? The Housing Industry Post-Pandemic
The COVID-19 pandemic is essentially over, but the disruption to the housing industry that lies in its wake will be felt for years to come