In a time of extreme uncertainty, it’s difficult to make long-range predictions. However, clearly the effects of COVID-19 on the U.S. economy and housing market will be extreme.
- Fewer affordable homes: The problem of low inventory will only get worse as fewer people will be moving, at least in the short term.
- Lower mobility: Again, at least for the short term, mobility will decrease as a moratorium on foreclosures and evictions will allow people to stay where they are.
- More sight-unseen buying: Virtual tours will become more and more common as people turn to tech to find their new home.
- Increase in housing inequality: Lower borrowing costs will certainly benefit the higher wage earners while those who can’t work from home will continue to struggle to make ends meet.