Homebuilding supported by de-urbanization trend
Homebuilding has fared well during the pandemic, driven in part by a trend toward de-urbanization amid COVID-19.
“Homebuilding in general has been one of the unexpected beneficiaries of the pandemic, but it certainly varies by market,” says Richard Whiteley, co-president and COO of IHP Capital Partners. “There are several factors at play that affect each area differently. For example, the initial de-urbanization of major cities like San Francisco, where people fled a crowded and congested environment, has benefited secondary markets like Sacramento, Calif., and Reno, Nev.”
According to Whiteley, migration and several other trends that were already under way before the pandemic have accelerated in 2020. “The U.S. has been experiencing a housing shortage for several years, with a growing population and an increasing stock of aging existing homes,” says Whiteley. “The onset of COVID-19 added tremendous pressure on the demand for new homes as people re-evalua