The Impact of COVID-19 on the Housing Industry in USA and Australia
COVID-19 has been one of the many plagues that have wreaked havoc on our earth in recent history. It took us all by surprise because we never expected to experience this particular disease in such a global scale in today’s modern world.
It is a global pandemic that has affected the body and mind of citizens from around the world. Aside from this, it also poses a great impact on the worldwide economy as well as the modern housing market this year and in the years to come.
This article will focus on explaining how this virus can affect the housing market not only in the U.S. but in Australia as well. If you would like to learn more, please do not hesitate to read on.
Learning the Basics
Because of the fluctuating condition of the global economy and its stock market for the past 18 months, there have been evidently adverse effects that had clearly been felt in various parts of the United States and Australia.
Because of this virus, there has been a significant amount of decrease in terms of public purchasing of property across the two countries. People are now wary of buying new property mainly because all their savings are focused on providing for their families immediate needs particularly during the ongoing quarantine.
To combat COVID-19, the government has imposed a two month-long lockdown for citizens of the U.S. On the part of the Australian government, travel restrictions have been imposed in recent months. People traveling on vacation or business from different countries to Australia are also mandated to undergo a 14-day self quarantine procedure.
Similar lock downs are also in place which can be detrimental to the housing and national economies in the long run.
How Could The Coronavirus Potentially Affect The Housing Industry In These Two Countries?
Basically, it could potentially affect the housing industry in a slow but steady pace particularly if the virus shows no signs of abating.
Because of the initiated lock downs, people will not be able to work normally. Of course there are exceptions, specifically those who are able to work from home. However, most of the well-known industries that provide lucrative jobs for many citizens in the U.S. and Australia will not be able to offer a work from home solution.
For this reason, there would be a significant reduction in earnings. Without personal buying power, nobody will be able to afford buying a new house anytime soon.
In addition to this, construction workers and supplies for housing projects may be put on hold as well, since budgets will be allocated for giving relief to those people who are out of a job due to the quarantine. Additionally many of those worker could be laid off as projects get abandoned.
Hospitality businesses such as restaurants, hotels and shopping malls may eventually close down mainly because there would be no customers allowed to provide patronage to these establishments. The same goes for small scale businesses blutin.com.au.
Without steady jobs , people will not be able to pay for their mortgage if this pandemic and quarantine continues.
However, all is not lost. If the international governments can find a way to stabilize the virus, and potentially find a cure, we can go into a new normal where people are able to go back to work with reasonable restrictions.
It is imperative to not panic. Trust that both the U.S. and Australian governments are doing their best to make sure that the Coronavirus Pandemic does not adversely affect the economy in the long run.
The important thing is that we are able to unite, keep ourselves healthy and follow government directives regarding this pandemic. Just keep yourself healthy and stay in your homes.