This article from HousingWire looks at how the homebuilding industry has been among the lucky few to benefit from the coronavirus pandemic. Lockdown measures, the federal government’s stimulus package, and populations sprawling outside of metropolitan areas in search of more space have all helped buoy the industry.
At the onset of the pandemic, housing demand took a hit due to heightened job losses. However, considering potential outbreaks and accompanying economic impacts, buyers chose to stay away from the housing market. The result was a dip in housing starts to a five-year low.
It was not only individuals who chose to stay away but businesses as well, leading to an abrupt halt in commercial development. This caused a freeze in permit requests, worker shortages, and other market challenges.
In the last quarter of 2020, the housing market is healthy and continues to maintain a momentum of growth. Homebuilders saw a rise in sales and new construction orders, renewed commercial development, and increased demand for the industry’s services. The federal government’s stimulus package meant buyers had access to generous loan terms and rates, which helped stoke the market. In addition, outside of cities, low inventory and robust demand increased profit margins for homebuilders working in those areas.
Overall, the pandemic created challenges for the housing market, yet on the macro level, the industry actually gained from the crisis. Homebuilders’ flexibility, access to generous loan terms, and support from the federal government kept their businesses afloat and buoyed home sales across the nation.
You can read this full article at: https://www.housingwire.com/articles/the-homebuilders-got-lucky-this-time/(subscription required)
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