What Will The Real Estate Industry Look Like After The Covid-19 Pandemic
One of the largest concerns relating to the coronavirus pandemic has to do with how the many industries, businesses, and economic systems in the world will recover once it’s all over. The real estate industry in America is one of the largest and most lucrative industries in general, so the fact that it’s barely functioning right now is concerning. Real estate agents and experts everywhere have been offering their opinions and advice regarding their predictions for what the housing market will look like in a post-Covid-19 world.
One prediction claims that buyers will likely up-size from their current property once this pandemic is over and the economy begins to recover. Things like “tiny homes” and “micro apartments” may have been a fun trend for millennial buyers moving to suburbia from the city before all of this, however, after being trapped in small studio apartments for several weeks, those who are in a financial position to upgrade and up-size their space, likely will.
Relocation in general will likely be a major real estate trend in the fall of 2020/beginning of 2021, and while some agents believe that many will want to up-size their properties, as mentioned above, others aren’t as convinced. Some predict that after this entire ordeal, the real estate market in larger metropolitan areas will actually increase exponentially.
“While suburbs are less dense than cities thereby reducing contact, they have fewer hospitals and resources for treatment. Singapore and Hong Kong are denser than New York, yet they were able to contain the pandemic more effectively. Nevertheless, the pandemic may result in those previously planning to relocate making the change sooner. In addition, the related job losses are expected to decrease rents, along with stricter home buying standards from lenders, as city housing stock tends more toward rental than ownership,” says David Stern, president of real estate due diligence firm Townhouse Partners.
Amid the Covid-19 pandemic, many have been utilizing their outdoor spaces a lot more, especially considering many of us aren’t able to leave our homes unless it’s absolutely necessary. This is also causing many prospective buyers to realize that they don’t like their outdoor spaces at all. Things like balconies, terraces, private roof decks, backyards, and porches will be in high demand from buyers post-pandemic.
Just like outdoor living spaces, many buyers are also realizing through working remotely that a home office has become a necessity in the 21st century. It’s likely that developers will begin designing properties with edited layouts that accommodate remote working conditions.
Unfortunately, before this pandemic even began, the US was experiencing a shortage of skilled workers in the construction industry. When builders/construction workers are given the clear to begin working on larger projects again, it’s expected that there will be delays in acquiring permits from the city, and supplies will also likely increase in pricing to help the economy recover. More than 30% of the construction materials used in the US are shipped here from overseas, so it’ll also be interesting to see how the trading industry recovers post-pandemic and how long it takes.
“Will construction workers remain distancing? Will there have to be someone on site to take people’s temperatures if someone gets sick? Even when the moratorium on construction ends and there’s a desire to go back to work, that doesn’t mean it’s going to happen with a degree of promptness. Many of those suppliers are going to build it up in the U.S., but it’s going to take years,” Barry LePatner, the Founder of New York City-based construction law firm LePatner & Associates.
What the world will look like post-coronavirus is unknown, and while we can’t predict how the hundreds of industries on Earth will recover, we do know that we have to get their first to find out. So it’s imperative to continue listening to your country’s healthcare workers so we have the best chance at seeing what comes next.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
