NORTEK BLOG

How COVID-19 is Affecting the Residential Building Industry

How COVID-19 is Affecting the Residential Building Industry BTIG in conjunction with Homesphere , the largest community of Home Builders and Building Professionals have reached out to their monthly Builder Survey respondents for a read on business conditions over the last week. Questions included: What’s the impact on sales, how has the community foot traffic been,and if cancellations have increased.

What did they find out?

Overall, sales and customer traffic has decreased. Cancellation rates have been seasonally normal but obtaining any new permits has been mostly delayed. In addition, start times have been split between a delayed start and those on still on schedule.

The survey included 129 respondents from 37 states, collectively. Here’s a look inside the survey results:

  • SALES
    • Sales deteriorated the week of March 27th as only 28% of respondents reported sales rates at normal seasonal levels (49% prior weekly survey)
    • 67% reported sales at below seasonal norms, up from 49% in the prior week
    • 5% noted sales above normal levels
  • CUSTOMER TRAFFIC
    • 80% saw customer traffic at below seasonal norms, up from 67% in the prior survey
    • 20% described traffic at normal levels, but no builder saw traffic above seasonal norms
  • CANCELLATION RATES
    • 63% of respondents noted seasonally normal cancellation rates, down from 70% in the prior survey.
    • 10% described cancellation rates as lower than normal (from 10%)
    • 26% described can rates as above normal levels (from 16%).
  • START TIMES
    • 42% of respondents reduced their start expectations last week
    • 36% of respondents remain on plan for starts
    • 22% of respondents have halted new starts
  • BUILDING PERMITS
    • 62% of respondents reported that it is taking longer than normal to obtain a permit
    • 20% experienced no issues
    • 18% of builders were not able to obtain permit at all

Click HERE for the full results.