How Has Coronavirus Changed The Real Estate Industry
The coronavirus pandemic has greatly changed people’s behaviors. Now more than ever, people are more cautious of their living spaces. The need to stay at home has opened peoples’eyes to the need for more space and comfort. People are being called to increase their hygiene levels, and the bathroom has become a more important feature at home. It is no wonder more people are considering bathroom remodeling to improve the one room they are spending more time in during this pandemic. This is a shift that will most likely inform tenants’ decisions even after the pandemic. It is bits and pieces like these that are changing the real estate industry.
Dropping Demand for New Homes
The following reasons have contributed to a decrease in home purchasing.
1. Lack of finances
One of the most hit areas by the pandemic is peoples’ financial standing. The need to send people home saw a majority lose their jobs, take pay cuts or go for unpaid leaves. This meant a change in purchasing behavior to spend on essential items such as medical and food. Most people who had plans to buy homes were forced to hold back and wait for things to normalize. Lenders are wary of the buyers’ payments capabilities, and most are reported to raise the
requirements needed for one to secure a loan. Others are suspending home purchasing loans for an undefined length of time. All this has greatly impacted the number of home sales at this time.
2. The need to see the houses
Coronavirus caused lock downs for most geographical areas. For the real estate industry, that meant buyers could no longer be able to visit the houses they wanted to buy. While they can view the houses via virtual tours, most buyers still prefer seeing the houses in person. And this has greatly reduced house sales over the period.
3. Shifting to remote work
The need to send people home has had organizations rethinking the need for a physical office. They are now aware of the benefits of remote working, and most are likely to shift their entire workforce to work remotely. This will have an impact on commercial building leases that are set to drop significantly.
Clients’ Behavior That Will Most Likely Carry Over After the Pandemic
The change in buyers’ and tenants’ behavior will most likely spread to the post coronavirus period. Realtors and property owners will need to be proactive in aligning their properties to incorporate their needs now and in the coming months or even years. The following are some changes that will most likely to carry over after the pandemic, including how designers should adapt to suit these changes.
1. The need for increased storage
The need to stay indoors meant stocking up on food and medical supplies. That raised a need to have enough storage to store these supplies. This purchasing behavior will most likely persist even after the virus. In addition, the incline to buy online will mean additional storage to store deliveries. Designers should increase storage areas such as pantries and cabinets.
2. The need for spaces that will drive productivity in remote work
Since the onset of the virus, a big majority of the people are now working from home. People want to be productive in this new way of working, and every avenue recommends a dedicated workspace with a good amount of natural light. Exercising, exposure to nature, and staying in airy rooms also contribute to productivity. It is possible that many people will stick to working from home, which will redefine what they will be looking for in houses. People will be more inclined to buy houses with massive space; an open plan will cut in this list. They will also consider houses that let in more natural light as well those with good air systems. Properties with gym facilities and conducive coworking spaces will be the most preferred. Designers need to increase the size of the windows to let in more light. They also need to incorporate gyms, pools, greenery spaces, and office rooms in properties.
3. The need for safety in shared spaces
People are more cautious of contracting the disease and they are following CDC regulations to keep the virus at bay. However, most people will not like wearing a mask to common areas such as shared laundry areas in properties. Designers should expect more people to ask for in-unit laundry even after the pandemic.
The coronavirus pandemic is shifting industries, and it is no doubt that the real estate industry will not be left behind. Consumer needs are surely changing, so property owners will have no choice but to adapt to these changes if they are to remain in business post coronavirus