(Disclosure: Rose Law Group represents Fulton Homes, Lennar, Meritage Homes, Richmond American Homes, Shea Homes and Taylor Morrison.)
By Mary Salmonsen | Builder
At this time last year, new-home construction faced a crisis. The COVID-19 pandemic had disrupted regular operations, new construction and sales had stalled, and the economy was in a deep, sudden recession. BUILDER itself cautioned readers that the housing market had been “thrown into turmoil,” and that 2019’s closing patterns—then the strongest year for the market since the Great Recession—could not fully indicate how home sales would fare in 2020.
Since then, the housing market has undergone a complete rebound—one of the only industries to do so over the course of the pandemic. Virtual sales, home tours by appointment, and safety measures on jobsites have enabled new-home construction to continue with little interruption. Low mortgage rates and work-from-home arrangements lured former commuters out of cities to find larger homes at more affordable prices, whether in suburban areas or smaller markets. Builders bracing to take a hit instead found themselves inundated with demand, and some even limited sales or intentionally raised prices to stem the flow and avoid gapping out.