AMIDST THE AFTERMATH: CHALLENGES OF REAL ESTATE SECTOR IN THE POST COVID LANDSCAPE

Abstract

The COVID-19 pandemic has significantly disrupted various sectors worldwide, with the real estate market experiencing profound changes that continue to challenge home buyers. This paper explores the myriad challenges faced by individuals attempting to purchase homes in the post-pandemic era, a task that has become increasingly Herculean due to multiple intertwined factors. The economic impact of the pandemic has been a primary driver of change, with substantial job losses and reduced incomes weakening buyer purchasing power. Additionally, the shift to remote work has altered housing preferences, leading to increased demand for homes in suburban and rural areas, thus escalating prices and intensifying competition in previously less sought-after locations.

The study analyzes how these changes have affected the affordability and availability of housing, drawing on data from real estate trends, economic reports, and consumer surveys. One key finding is the significant influence of supply chain disruptions on the construction industry, which has led to increased costs of building materials, subsequently raising home prices. These factors combine to make the pursuit of homeownership an arduous task for many, particularly first-time buyers and those in lower income brackets.

Moreover, the paper examines the responses from governments and financial institutions, which have included mortgage forbearance programs and stimulus measures aimed at stabilizing the housing market. However, the long-term effects of these interventions remain uncertain, with potential implications for market stability and buyer sentiment.

The implications of these findings are critical for policymakers, financial institutions, and potential home buyers. Understanding the post-pandemic shifts in the real estate market is essential for devising strategies that ensure the availability of affordable housing and the stability of the housing market. The paper concludes with recommendations for future research and policy actions that could help mitigate the challenges faced by home buyers in the new normal.