Contractors stay on work sites with some limits and new practices due to COVID-19

Staff Photo by Robin Rudd / Carpenters work on the roof of a house being build on Julian Road, at the former site of the Joe Engel Farm, on March 27, 2020.
Staff Photo by Robin Rudd / Carpenters work on the roof of a house being build on Julian Road, at the former site of the Joe Engel Farm, on March 27, 2020.

Builders are keeping their distance from one another, not sharing tools or pens and washing their hands more often. New homes are being viewed online and purchase deals signed with virtual signatures that don't require in-person interactions.

But construction projects are continuing across the Chattanooga area and homes continue to sell, at least for now, even as many other businesses are shuttered due to the coronavirus.

Home builders say they are building for the future when they hope the virus is over and the economic upheaval is not too great. In the meantime, those building new houses are limiting the size of their work crews on site and taking extra precautions to limit the spread of the virus.

"There is a slight slowdown and some projects are taking a little bit more time, but we feel like we're moving along as close to normal as possible and we're confident we can move forward," said Doug Fisher, executive director for the Home Builders Association of Greater Chattanooga. "We're trying to be proactive as an industry and are developing a teaching model for our workers. We hope that soon all of our members will certify that all of their workers have been trained to work in a safe manner."

Despite limits imposed on many retailers, restaurants and large group gatherings in most of America, only New York, Pennsylvania, Vermont, Michigan and Washington among the 50 U.S. states have ordered residential builders to stop building due to the coronavirus, according to data compiled by the National Association of Home Builders.

Home sales and tours by buyers are increasingly being done online and document signing and sales are also being conducted in the virtual world. With traditional open houses canceled, home buyers are often viewing houses in virtual tours and in a small group that stays isolated from one another.

"Everyone is putting safety first, but for the most part we are able to continue building and selling homes, although in a much different manner," said Winn Pratt, president of Pratt Homes, Chattanooga's biggest home building company which built 203 homes last year. "Construction crews are naturally more than 6 feet apart when they are building houses, for the most part, and most of the work is done outdoors and without a lot of other workers in close proximity."

Pratt said builders could face some slowdown with supply interruptions and limits on how some work is done because of limits on travel and activity designed to limit the spread of the virus.

"But we haven't experienced any problems yet," he said.

The economic upheaval caused by widespread layoffs could also threaten home building, but builders are entering the anticipated economic slump with the demand for housing exceeding its supply in most markets.

A new report by Construction Coverage released this week found that Chattanooga built slightly fewer houses last year than the nation as a whole even though Chattanooga's population has continued to outpace the nation.

Last year, Construction Coverage counted 2,273 new homes built in metro Chattanooga, or 40.5 new housing units per 10,000 residents. Nationwide, home builders built 41.9 units per 10,000 residents.

"Before this national tragedy hit us, demand was through the roof for almost everybody," said Jay Bell, president of Bell Development and the immediate past president of the local Home Builders Association. "We don't know where demand is going from here because everything is in turmoil from more unemployment, possible supply chain interruptions and the uncertainty of trying to figure how we work safely through all of this. So naturally, we're going to see a slowdown in building as we try to work responsibly through this health crisis."

Bell said he has "has hit the pause button on new development" and his company is limiting the number of workers on each home site to only two or three people to ensure they keep their social distance from each other. Only one building trade is usually on a site at one time and supply deliveries are being made without the usual personal interaction and signing of documents that occurred at work sites in the past.

"There are still people needing houses and we're still selling houses, but we don't know how this may impact building and sales for a while," Bell said.

Pratt envisions a "V" shaped economic downturn and bounce back once the worst of coronavirus passes or a vaccine or cure is developed.

Bell said since the Great Recession and the more cautious building and lending approach adopted in the wake of the mortgage crisis a decade ago, home builders have not been as aggressive as they were before the recession.

"We haven't built enough houses in the past decade to supply the demand so there is a housing shortage nationwide that is immense and that is not going to away," Bell said. "I believe while this is a huge, unfortunate crisis, it will pass. The demand for housing is still going to be there on the other side."

Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340

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