Social distancing amid the Covid-19 pandemic certainly changed the landscape of real estate. While more businesses are utilizing their offices less with employees working from home, an unforeseen boom in housing is helping to boost the sector and real estate-focused exchange-traded funds (ETFs).
“Just six months ago, the idea of a housing boom would have seemed ridiculous as millions of Americans were losing their jobs,” an Investor’s Business Daily article noted. “But low interest rates and the work-from-home trend are stoking real estate stocks and home sales in smaller housing markets. The flip side is that once-sky-high markets have come crashing down, especially in the San Francisco Bay Area. But overall, both new and existing-home sales have reached levels last seen before the Great Recession.”
This is helping to boost homebuilder confidence, which is helping to fuel funds like the SPDR S&P Homebuilders ETF (NYSEArca: XHB) , which is up