The impact of COVID19 and how it has affected the Housing Industry

The impact of COVID19 and how it has affected the Housing Industry

2020 by far as been a remarkably interesting and crazy year.  The impact of COVID 19 has affected many industries such as Restaurants, Retail stores, hospitality, families, schools, and so much more.  It has not only affected these industries here in the United States but also throughout the world causing a global pandemic and has disrupted much of the world’s economy.

One of the essential activities of daily living is housing. There has been a huge impact on the housing market in several areas of the housing industry such as; sellers delaying from selling their homes, buyers delaying their house search, and the low to moderate income individuals showing hardship to paying for rents and mortgages, in addition the effects of the increase in sales of the real estate housing market.

Reason behind the delay of why sellers are postponing the sale of their home, is because most sellers are scared to open up there home to the public while Covid-19 is still going around, especially when the sellers are still living in the home. According to OJO labs “The study found that 80% of would be – buyers have either delayed their housing search or stopped it altogether” for the reason that the seller are not selling the demand is low which is causing less people to start the buying process.

The hardest hit by the COVID 19 crisis currently is the low to moderate income individuals.  It has been reported that even before COVID 19 crisis 10-15% of households had reported insecurity in housing (www.Bookings.edu ).  According to Bookings.edu article “Housing hardship reached unprecedented heights during COVID 19 pandemic the country’s housing crisis is only getting worse and in April 2020, 1 in 3 Americans did not pay rent, and, despite laws governing temporary prohibiting of evictions landlords still evictedtenants. Today with the current pandemic it has been reported that the unemployment rates are higher and folks are out of work(unemployment rate in VA is at 6.1% vs 8.4% of the US according to www.vec.virginia.gov and www.bls.gov respectively). With this known fact it is unfortunate that the housing crisis will most likely continue to suffer for many more months.

It seems that this could almost be a contradicting statementexpressing the positive sales in real estate activity.  According to the Prince William Association of Realtors www.pwar.com/market-statistics surprisingly there has been an increase of house sales this year compared to last year. In August 2019 there were 742 homes sold compared to August 2020 with a total of 827 home sales.  The cost of the average home in Prince William County sold for a whopping $428,000 in August 2020 compared to the average home sale in August 2019 at $398,250.  It is easy to conclude that the COVID19 pandemic really has not had much of an impact on sales in the real estate market.  

So, in conclusion COVID19 has had a huge effect on our housing industry in a negative and in a somewhat positive way.  It’s left ourhousing market with many home sellers struggling to place their homes on the market because exposing their home to the public in fear of COVID19, and buyers struggling to find homes due to their insecurity of employment concerns. COVID19 has definitely showedits true colors when it comes to low to moderate income individuals making the essential housing an unresolved crisis. However,  the Real Estate sales market has been stable and busy.