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The coronavirus pandemic has affected virtually every aspect of life. When large sectors of the economy shut down in March, home sales dropped sharply. Although numbers are still well below pre-pandemic levels and some home builders have faced significant challenges, demand for new construction has recently increased.

How Home Builders Have Weathered the COVID-19 Pandemic
Many builders that order products from companies in other countries have faced disruptions in their supply chains. Some home builders have struggled to acquire the supplies they need, while others have partnered with suppliers in the United States.

In some areas, state and local governments issued orders that brought construction projects to a halt. The processes of obtaining permits and having new buildings inspected have frequently been delayed because of office closures. Some construction companies have taken advantage of loans to get through this challenging time.

Why Demand for New Houses has Grown Recently
With so many people currently working from home, and with the possibility that many will continue to do so for the foreseeable future, some renters and owners of small houses are realizing that their current space is inadequate for their changing needs. Some prospective buyers are also looking to escape crowded urban areas. People may be willing to move to the suburbs to have more space, especially if they would not have to commute to an office every day.

Some homeowners who were planning to sell their houses removed them from the market or decided not to list them at all because of concerns about having strangers come in for viewings and possibly bring the coronavirus. Many sellers were also worried that home values might plummet and decided to wait it out.

The small inventory of existing houses for sale has prompted some prospective buyers to look into new construction. Newly built homes have also become appealing to buyers who are nervous about viewing houses that are currently occupied due to fears about contracting the coronavirus. Since no one has ever lived in a brand-new house, buyers may consider it a safer option than an existing home.

What Home Builders are Doing to Attract Buyers
The COVID-19 pandemic has forced many businesses to rely on technology to communicate online more than they did in the past. For home builders, that is nothing new. Construction companies have been using technology for years to show model houses to potential buyers, to allow them to choose a layout and features, and to place orders. 

Prospective buyers can view a virtual tour and schedule an appointment to view a house in person while following social distancing rules and taking safety precautions. Some builders are offering discounts or adding amenities to entice buyers who are looking for homes that have the comforts they want and that can make them feel safe from the coronavirus.

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