How Has COVID-19 Affected New Home Construction in Ontario?

With the halt of anything non-essential in Ontario during the Covid-19 pandemic many new home construction projects have stopped. With the exception of those already started.

So how has this affected those that didn’t start? If a permit was issued prior to the lock down building can continue in most of Ontario*

It is anticipated that those who hadn’t already commenced building that there will be some delays. How long remains to be seen at this time.

It isn’t just the actual building and construction that will be affected by the COVID-19 restrictions. There are a number of factors that can contribute to further delays in new home construction. When the province begins to open up the economy it is anticipated that it will be gradual. Meaning, it won’t be business as usual right away. Here is a list of the following things that could also contribute to further delays in the build of your new home:

Building permits and municipality approvals

Materials and supplies for  building

Trade workers

Development delays

There will be longer wait times due to the demand that COVID19 restrictions have put on the new home construction industry. However many new home builders and their teams are working in the back ground to help avoid as many as possible. It is always a good idea to have a discussion with your builder and real estate sales representative to find out about anticipated delays with your build.

Most new home construction transactions do take unavoidable delays in to consideration when negotiating terms and typically have lengthy closing dates to accomodate. This will help ease some of the time lost due to the COVID19 pandemic.

It is important to remain as positive as possible however, if you are involved in a new home construction transaction during COVID19 you may want to consider a back up plan should you face delays in your time line.

Do you have more questions about new construction and COVID19? Reach out

*check with local municipalities as each could have different guidelines for this