Summary List Placement
How has the coronavirus pandemic impacted the world and what changes will be long term?
Jefferies, a financial services company, issued a report on September 10 using answers from a survey of over 5,500 across 11 countries: USA, China, Japan, the UK, France, Italy, Germany, Spain, Hong Kong, India and Australia. It asked consumers a variety of questions on subjects including how long will people be working from home for and how responsible companies have acted.
Based on the consumer-attitude data, Jefferies highlighted six predictions they have on how COVID-19 will impact the future — and they all have big implications for real estate.
These predictions hover around the importance of being inside and avoiding crowded spaces, like restaurants and movie theaters. More specifically, the survey found people are expected to continue to spend an abundance of time at home.
1. Healthy living will continue to hold importance
As a result of the pandemic, Jefferies believes that people will continue to pursue a healthy lifestyle.
“Never in our lifetimes has the importance of personal health and hygiene been thrown into sharper relief,” the report reads.
The report goes on to explain that the industries likely to be negatively impacted by this prediction include tobacco, fast food, and convenience stores. On the contrary, personal care, fitness, and health foods will benefit.
2. There will continue to be a rise in the need for home improvement
Social distancing and stay-at-home orders have forced people to rethink their living situations. And home improvement is expected to continue to hold importance.
“Spending more time at home, we ramp up home improvement,” the report reads.
Sectors that will likely benefit from this, per Jefferies, include home security, homeware stores, and home technology. On the contrary, those at risk include recreational products and recreational activities.
3. People will continue to opt out of taking public transportation
As Jefferies explains, public transportation is a health risk in a time of social distancing.
“Encouraged by environmental regulation, consumers buy electric vehicles at a rate not seen since the after-war period,” the report reads.
While the auto industry, like car rentals, will likely benefit from this prediction, per the report, buses, railroads, and ride sharing will hurt.
With public transportation becoming less desirable, some may argue that cities will continue to lose residents to more suburban-like markets.
Bloomberg reported that at the end of this past March, just 10% of the typical 5 million daily New York City subway riders made weekday trips. However, that still works out to 500,000 trips a day, quite a lot considering it was during the height of the city’s outbreak.
4. Virtual entertainment will trump in-person entertainment
“Fear of public spaces keeps fans away and the temporary moratorium on concerts, theme parks and movie theatres becomes semi-permanent,” the report reads.
Jefferies predicts that TV will become more valuable, and online will become the stage for much of entertainment. Theme parks, movie theaters, casinos, and concert venues are all expected to be negatively impacted.
5. There will be less dining out
With the fear and challenges of social distancing that come with …read more
Source:: Business Insider