The Coronavirus Has Had A Huge Impact On The Real Estate Industry
COVID-19, also known as the coronavirus, has had a huge impact on nearly every facet of society. The real estate industry is no exception. One big question that seems to be on everyone’s minds these days is “How has the coronavirus affected housing opportunities?” The coronavirus has turned the real estate industry on its head, especially when it comes to affordable homes and COVID home loans.
The need for affordable housing was great even before the coronavirus hit. The pandemic has only exacerbated the need for affordable housing in the United States. For one, the coronavirus has caused unemployment to skyrocket. More than 40 million Americans have filed for unemployment since the outbreak of the coronavirus. These are the highest unemployment numbers that the United States has ever seen. With increased unemployment comes increased foreclosures and evictions. While most states instituted a stay on evictions, many of these stays are being lifted. This means that millions of Americans are facing the prospect of eviction because of missed rent payments.
One thing that is unique about the coronavirus is that its economic fallout has hit the service industry especially hard. A huge percentage of service industry workers live in rental properties. The layoffs and closings that have eviscerated the service industry have contributed to the dramatic increase in evictions in the U.S. This underscores the need for affordable homes and rental properties in the U.S. But this crisis is not limited to renters: many homeowners are struggling to pay mortgages as well, The need for affordable housingis widespread.
All of that is, of course, very bad news. The good news is that the coronavirus has had some positive effects on home loans. For one, interest rates have hit rock-bottom, which means that COVID home loans tend to be more affordable. Unfortunately, many Americans find this to be small comfort, as they are reeling from job losses/reduced work hours.
Another positive aspect of the current real estate situation is that many Americans are getting down payment assistance. Down payment assistance programs help middle-to-low income residents achieve their dream of owning a home. These programs existed before the outbreak of the coronavirus and, fortunately, most of these programs still exist. That being said, it is uncertain how many of these programs will continue to exist down the road, as there have been cuts to funding across the board. For now, though, down payment assistance programs serve as a huge help to those seeking home loans.
The Future Is Uncertain
When it comes to affordable homes and COVID home loans, the future of Real Estate is uncertain. The U.S. economy may kick into gear, or it may continue to sputter. These are unprecedented times for American renters, homeowners, and homebuyers. The good news is that there is still plenty of help available in the areas of affordable housing and COVID home loans.