Page 18 - Green Builder Nov-Dec 2020 Issue

Housing starts in the thousands

A different world. Builders and
designers are rethinking how
homes are used. Will they
accommodate long periods
of self isolation and working
at home? CREDIT: GERENME ISTOCK

Confidence Roller Coaster: Spend or Hunker Down?

Just as the economic freefall caused by the early pandemic began to stabilize, new fears
shook up the market. Is another slide just around the corner?

ONSUMERS MAY HAVE POSITIVE FEELINGS about home buying, but Here are ways that COVID-19 has impacted consumer behavior, as noted
their feelings about the economy—which has a major impact on by COGNITION Smart Data:
how many homes are built and sold—aren’t so rosy. The University Consumer confidence: Despite efforts to reopen the economy, net
C of Michigan (UM)’s broader headline consumer sentiment index in consumer optimism remains low. Most consumers expect that COVID-19 will
November posted its first monthly decline since July. According to UM officials, impact the economy, their finances, and their lives for a long time to come.
the setback was driven by “growing pessimism about the future, rather than Spending: As incomes have declined, unemployment persists, and
unease about the present.” uncertainty remains. Consumers have reduced discretionary spending,
The report also highlighted the differences in sentiment across political focusing on essentials only. Groceries, household supplies and home
party lines. Survey respondents who identify as Republican expressed far less entertainment are among the necessities. Items such as restaurants, apparel,
optimism for the next six months than they did in October, while the outlook home furnishings, outside entertainment, personal care, travel and recreation;
for those who identify as a Democrat did not change. not so much.
The pandemic is also to blame for consumer ennui. According to Kaye Enhanced digitization: Whether feeling fatigued or frightened, many
Hermanson, a psychologist at the University of California-Davis, the term consumers are keeping an online presence. Those with the means are shopping
“COVID fatigue” sums it up. “Many people are exhausted by it all,” she says. online. When given the choice, people continue to work and school from home
“They’d rather risk getting sick than stay home or be careful. Others have simply through videoconferencing, video chat, and remote learning. Consumers are
stopped listening to health leaders and science.” also far more reliant on telemedicine, home healthcare and home fitness.

16 GREEN BUILDER November/December 2020 www.greenbuildermedia.com

12-28, 32-36 GB 1120 State of the Industry.indd 16 12/10/20 6:49 PM