In Oklahoma City, new homes being built are influenced by COVID-19. Evidently, buyers want two home offices and outdoor living spaces, which were already very popular, but are now even more popular than ever. Not to mention “healthy” house construction is becoming more popular.
July Homestarts On the Rise
According to Norman-based Dharma Inc.’s Builder Report, home starts reached 665 in July, the highest level since August 2013, when the market was regaining its footing after the Great Recession.
This was 47.8 percent more than the previous month and 55.7 percent higher than in July of last year, according to Dharma.
According to Builder Report, which tracks construction in Oklahoma City, unincorporated Oklahoma County, Bethany, Blanchard, Choctaw, Edmond, Midwest City, Moore, Mustang, Newcastle, Noble, Norman, Shawnee, and Yukon, builders took permits to build 3,351 homes through July, a 14.1 percent increase over the first seven months of 2019.
Demand is Still High
Due to a scarcity of completed homes for sale, builders are scrambling to fulfill demand.
According to the Oklahoma City Metro Association of Realtors, the supply of properties listed with Realtors in the metro region fell to 1.7 months in June, down from 1.8 months in May.
One reason is because a lot of existing-home sellers have taken their properties off the market due to the possibility of COVID exposure from an unknowing home shopper.
On the flip side, many buyers claim they are hesitant to enter occupied houses for sale due to their chances of COVID exposure.
New houses seem to be filling the void because consumers believe there is no danger in seeing and purchasing them since they are empty and have never been inhabited.
Also, as a result of the coronavirus, more individuals are purchasing homes without first inspecting them. According to a recent Redfin poll, 45 percent of respondents viewed homes in the previous year, presumably using video, online open houses, and other digital advances. The proportion is projected to rise.
What is Today’s New Homebuyer Really After?
Since the work-at-home economy seems to be thriving for the foreseeable future, there is a high demand for sound-insulated, dual-office houses. There always seems to be a loud Zoom call spouse.
Builders are also seeing an increase in demand for outdoor living areas where individuals may maintain social distance from their friends and family while yet feeling a sense of community.
According to a Realtor.com study, more than 60 percent of prospective homebuyers indicated that working from home is altering what they want in a property as well as their preferred location.
The ability to work remotely is broadening buyers’ geographic choices and increasing their desire to purchase.
Although it is too early to predict the long-term effect of the COVID-era, remote work aspect on housing, it is evident that the epidemic is influencing how people live and work together.
Other desirable features include a MERV-13 air-filtration system, low-VOC paints, and “stovetop ventilation through the roof.” MERV stands for Minimum Efficiency Reporting Value, a measurement of the effectiveness of air filters ranging from one to 16, with the higher the value indicating greater effectiveness.
At the moment, every builder in Oklahoma City is very busy. The issue is a lack of construction materials due to production and labor constraints in the market right now.
Currently, the most pressing issue is the cost of lumber. Basic frame lumber prices are expected to rise by 20 to 40 percent, according to suppliers.