Currently Reading

Thinking Ahead: COVID-19’s Long- and Short-Term Effects on Real Estate

Advertisement

Thinking Ahead: COVID-19’s Long- and Short-Term Effects on Real Estate


March 25, 2020
Roofer at sunset
By sculpies

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.

Read More

 

Related Stories

Design

Living Now: America at Home Study Concept Home

Designed and built based on extensive consumer research, Barnaby delivers the goods for single-family post-pandemic living

Coronavirus Resources and Information

Colorado Contractors Sue Denver Over Vaccine Mandate

The mandate effectively requires companies to fire hard-to-replace workers who aren't vaccinated. "If we lose any workers due to these vaccine mandates, there's nobody to replace them," says Tony Milo of the Colorado Contractors Association.

Coronavirus Resources and Information

Court Rules PPP Loans to Builders Can Be Forgiven

The judge agreed with NAHB’s position that the plain language of the statute creating the PPP prevented SBA from applying eligibility regulations that sought to exclude NAHB members.

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.