Pros and Cons of Building a Home During a Pandemic

2020 has been riddled with uncertainty. Almost any plans you had this year probably got cancelled, postponed, or changed in some way. Building a house is no exception. Many people who were in the middle of building or getting ready to start had to put things on hold. As shutdowns and stay-at-home orders were lifted, construction continued and was deemed an essential service. Many folks are feeling hesitant to move, buy, sell, or build a home right now. Although things are being done a little differently, it’s possible to move forward with your plans of building a new home. Consider these pros and cons of building a home during a pandemic.

PROS

Record low interest rates

According to Bankrate, interest rates hit another record low the last week of October. The average 30-year fixed-rate loan fell to 3.03 percent from 3.06 percent, according to Bankrate’s weekly survey of large lenders. Interest rates have been going down since July of 2019. 

The trend can’t continue forever, right? Take advantage of these low interest rates while you can. Lower interest rates will allow you to build more house for your money. At the current 30-year fixed rate, you’ll pay $422 each month for every $100,000 you borrow. You can do a lot with that in Southwest Missouri!

VIDEO: Building a home during the COVID-19 pandemic from ABC 7 News

Low COVID-19 risk

Builders, contractors, and construction workers have adopted new coronavirus safety practices just like every other industry. Thankfully, building a house can be done while keeping everyone safe. For example, workers have hand sanitizer and disinfectant wipes on hand. Large crews are typically broken up into smaller crews, so fewer people are working at a job site at a time. Plus, the first stages of a home build are open air environments, making it harder to pass along and contract COVID-19. Contractors are striving to keep customers safe, as well. Most builders are conducting more business over the phone or email to limit face-to-face consultations. When it boils down to it, building a home during a pandemic is a fairly safe endeavor.

Something happy to think about!

COVID has taken its toll on everyone’s mental health this year. For some, building a new house is the experience of a lifetime! This might just be the mental break you need! If you’ve been planning on building and are hesitating because of the pandemic, don’t let COVID stop you. Taking your focus off of the surrounding chaos will have a positive impact on your health as a whole.

CONS

The process will be delayed

Every aspect of the home building process is taking longer than normal. From the mortgage process to material supply chains, things are just taking more time than they used to. The social distancing efforts have decreased the amount of people working on a job at a time, and some materials are hard to get right now due to border closures and storms. Building a home during a pandemic could be challenging if you have a tight deadline.

High demand for construction & remodeling

When you ask people to stay at home, eat at home, play at home, and work at home, guess what happens. People start wanting to fix up their homes! We are seeing a growing demand for home renovations and additions. This is great news for the real estate and construction industries; However, with things already being delayed, this high demand can cause jobs to get pushed back even longer. 

Increased price of materials

The shutdowns and limitations on manufacturing in earlier months have put stress on construction supply chains. Manufacturers are still trying to bounce back. As a result of the limited supply, the prices of some building materials have gone up significantly. Lumber might cost two to three times what it did this time last year. This cost increase will drive up the overall cost of building a home.

“Builders say there are plenty of factors pointing to a strong market in the future: population growth; household formation; historically low interest rates and inventory levels; and continuing growth of the 55 and older buyer.”

Amanda Andrade-Rhoades/For The Washington Post

Building a home during a pandemic has its own challenges. Prices are different, deadlines are pushed back, and everyone is adapting to a new way of doing things. Although there are pros and cons to building a home right now, that is true anytime. At the end of the day, life must go on, and we want you to know that your plans to build a home don’t have to fall aside amidst this pandemic. If you’d like to learn more about what it looks like to build right now, contact one of our qualified realtors today!