Coronavirus is a serious threat that changes people’s lives all over the world. Today, nobody knows for sure how long this pandemic is going to last and how hard it will hit all spheres in our lives.
It’s quite obvious that the coronavirus outbreak changes the way people communicate and do business. The vast majority of people are asked to stay home, distance themselves from the other people in order to reduce the risk of contracting the virus.
The real estate industry also experiences the negative influence of COVID-19 as well. Some people are afraid to buy or sell property due to the current economic uncertainty. The others simply want to avoid the unwanted social contacts. However, the real estate market is not as badly affected as the entertainment and travel industries.
Coronavirus Outbreak Impacts Construction Industry
The construction industry has been hit hard by the coronavirus outbreak. Some companies were forced to shut down their building sites in order to stop the spread of the deadly virus. But those builders who still work are very much afraid for their safety. However, companies ask their workers to take precautions.
Some construction projects are halted due to delays in supply delivery. Building materials are usually imported from China. Experts say that about 30% supplies used in the US homebuilding industry come from China. So, it is extremely important for construction companies to start receiving all the materials again. About 20% of all US builders say that they experience the lack of materials and supplies due to the coronavirus outbreak.
It seems like China has already overcome the hardest days and its economy is slowly recovering after the devastating coronavirus outbreak. In one way or another, the US construction industry is starting to adapt to constantly changing rules and restrictions set by the coronavirus pandemic.
COVID-19 Affects Different US Regions
The scale of the disruption caused by the coronavirus outbreak varies significantly in different US states. Thus, Florida experiences huge difficulties in such industries as hotels, restaurants and bars, cruise ships, casinos and many others.
There is no doubt about the fact that the tourism industry will also be seriously hit by the spread of the deadly virus. Due to the coronavirus outbreak some people lose their jobs. So, traveling will not be their top priority even when the situation gets back to normal.
The coronavirus pandemic impacts oil prices in Texas. As a result, low oil prices impact negatively oil producers. All hotels, bars and restaurants must be closed in hard-hit areas. Some restaurants are allowed to offer delivery.
The situation is really tough for most people. Hopefully, all restaurants and bars will restart their work successfully when the quarantine is over. However, the quarantine period is likely to be prolonged in many parts of the world.
Rental Apartment Industry May Suffer Due to the Virus Outbreak
Some people choose to rent an apartment just because they can’t buy the home of their own. On the other hand, people rent property due to the fact that renting provides them with some financial and personal opportunities.
Unfortunately, the coronavirus pandemic has changed the lives of so many people. Those people, who have lost their jobs, will find it extremely hard to pay the rent.
At this point, landlords should understand the tough situation of their tenants and try to make concessions. Hopefully, the country will manage to contain the virus in the nearest future and we all will be able to get back on track.
Other Segments of Real Estate Sector Hit by the Coronavirus
There is no doubt about the fact that the retail segment has been seriously impacted by the coronavirus pandemic. This segment is facing serious losses. Under the current circumstances, people think about buying the necessities only – food, medications and personal hygiene products. Most people are not planning to buying new clothes or furniture. It may result in significant job cuts all over the country.
The office sector in the US is also going through hard times. Due to the fact that people are asked to stay home, most offices are empty now. The good news is that most people who had to leave their offices work successfully from home.
The experts predict that the economic situation will improve quickly after the coronavirus is contained.
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