The fundamentals of the property market haven’t changed.

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We have always viewed politics and the economy through the lens of property. How has Covid-19 redrawn the market?

All disasters interrupt. From stuttering consumption and investment decisions to travel and business plans, any disaster forces a pause in those things. Earthquakes, tsunamis and global pandemics are quite similar in this regard. Covid-19 has stopped us from going to work, from travelling, and the uncertainty it unleashed has caused a collapse in investment.

25th Jun, 2020 - 7 min read

In 2018 Robin Dillon-Merrill and her colleagues looked at the impact of different types of natural disasters on US real estate markets. They found that, relative to places not hit by earthquakes, floods or tornados, natural disasters tended to permanently increase housing rents. House prices could go either way. 

Poorer homeowners were much more likely to become renters after a flood if their house was uninsured. Homeownership rates went down in general, but wealthy households expanded their housing holdings. In the US, the most recent data show new home sales have increased in May, as has new activity in starter homes. 

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