Category: Investment

Before most Americans had even heard of the new coronavirus or COVID-19, the nation was suffering from a severe housing shortage. Builders couldn’t put homes up fast enough to satisfy the hordes of eager buyers and renters. But the global pandemic and ensuing financial crisis have put home construction on ice, setting the stage for an even worse housing shortage when the economy recovers.

Construction is not considered an essential business in at least five states, including hard-hit New York and Washington. That means job sites have been forced to close as state orders supersede the U.S. Department of Homeland Security’s guidance designating residential construction as an “essential infrastructure business.”

Even in places where builders are allowed to carry on as normal, buyer demand for new homes is waning. That’s likely to lead builders to put up fewer homes, at least until the crisis subsides. When you consider that

A modern waterfront mansion in Coral Gables, FL, that just landed on the market is already under contract. Listed for $59.5 million, it’s this week’s most expensive new listing on realtor.com®.

The pricey property on a private reserve was inspired by Aman Resorts, a luxury hotel chain. Dubbed Villa Serena, the estate is aimed at “the buyer who appreciates the natural splendor of the tropics yet desires a modern aesthetic,” according to the listing details.

Clearly, a buyer appreciated everything the place had to offer—the property is already in pending status. And despite the sky-high price, it’s easy to see the appeal.

It was designed by a local architect, Cesar Molina, who focuses on luxury residential and resort properties in South Florida and the Caribbean. His firm states that one of its goals is “to integrate contemporary technology with regionally appropriate architecture.”

A few weeks ago, single mother Heidi Ferguson, 44, seemed to be doing well. She was able to make ends meet as the owner of a vintage clothing and housewares shop in downtown Lake Worth, FL. But as the coronavirus tore through the U.S., leaving shuttered businesses and a ravaged economy in its wake, she was forced to close up shop two weeks ago and lay off her two employees.

She was able to pay the April rent for her two-bedroom, one-bathroom apartment only by taking out a credit card loan and tapping a separate line of credit for her business. She’ll need to pay back the latter within 60 days. Her landlord, a local building owner, granted her only a five-day extension to come up with the $1,435 rent.

Ferguson has been ramping up her online shop, but with consumers feeling wary, she’s not seeing items fly off