A home builder’s response to the COVID-19 crisis

It wasn’t long ago that experts were marveling at how for the first time ever in the U.S, we slipped into a new decade without a recession. Economists were cautiously optimistic about 2020. Of course, no one could predict the current pandemic.

COVID-19’s impact on the residential construction industry has been sharp, and especially in Houston, where construction had been booming. The coronavirus has changed our world and upended any previous construction industry predictions.

Houston’s residential construction industry has seen its share of setbacks over the last twelve years. Like the rest of the world, Houston was hit by the global economic crisis in 2008. Then, we saw a slew of hurricanes and disastrous floods—from Hurricane Ike to Hurricane Harvey—six flood events since 2008. Thousands of jobs disappeared. Then, we were faced with a shortage of construction workers as residents rushed to rebuild.

Now, in the last month, and almost overnight, the Houston housing industry went from explosive growth to a sharp slowdown. Many areas have seen a total freeze in new projects. At Arieli Custom Homes, we’re thankful that for now we’re still working. Housing construction has been deemed an essential business, and as we continue to work, we’re doing everything we can to keep ourselves, our subcontractors and our clients safe.

We’ve changed operations by:

1)     Meeting with clients and other business partners online or via phone conferencing, whenever possible. Practicing social distancing when we have to have in-person meetings.

2)     Asking our workers to maintain a safe distance from each other whenever reasonably possible.

3)     Reminding our teams to use always good hygiene.

As we continue to help our clients realize their dream of owning a custom-built home, we’re aware of the impact of COVID-19 on the residential construction industry and how the pandemic might alter the construction workforce, materials, construction financing, and project costs in general.

We’re optimistic that eventually the market will recover. But at the same time, we’re realistic, and we know there will be hardships along the way.

The construction workforce. Construction isn’t the type of work you can do from home. Much, if not most, of the work we do in custom home building requires close proximity, if not close contact with others. Workers are at risk of being exposed to the virus, of getting sick and of being quarantined at home as they recover. If too many workers fall sick, construction projects could be delayed. Without work, sub-contractors and their families will feel the effects of the loss of income.

Construction materials. The virus could also lead to problems with production, deliveries and the import of goods. Around 80% of the materials used in U.S. construction are made in China. Chinese-made goods will likely rise in price, or we could end up seeing a shortage of construction materials.

Construction financing. With a less rosy economic outlook for the foreseeable future, lenders might perceive too much risk for speculative construction of almost any kind, and they might step back from or cancel approved loans.

Costs. The virus could upend the budget and timeline for ongoing projects and those about the start. Estimates could become moot as a dwindling supply of materials pushes prices up.

Our clients. We understand people’s financial situation may have changed because of the pandemic. Some clients might need to adjust plans to reduce costs, others might need to pause on a project. We have the same concerns and hopes for the future as our clients. We regard our clients as friends, and we’ll be flexible and work to find creative ways to help them preserve or pause their projects.

We got into the real estate business during the 2009 economic crisis, and then established our own local family business, Arieli Custom Homes, just before Hurricane Harvey flooded thousands of Houston homes. After Harvey, we were eager to help rebuild our community, where we live with our children.

We Houstonians have been through difficult times together. Now, here we are again, facing an unprecedented unknown. But we are resilient and resourceful. Together, we’ll do everything we can to succeed. We’ll tighten our belts and we’ll push forward, working diligently and lifting each other up along the way.

There are tons of great reasons for women to get into construction

In the last ten years, more women have started working in construction. But unfortunately, it’s still largely a male-dominated field.

Only around 10% of construction workers are women, and of those, just 1% work on job sites—as subcontractors, superintendents or inspectors. More women work in industries like mining and natural resources than in construction.

So, why the big gender gap in construction? Maybe women think the field is an unappealing one to work in because of the grueling physical tasks required and its often cluttered work environment. Maybe men think women can’t handle the job. Or maybe, it’s a little bit of both.

It’s true that the kind of work that gets done on construction sites is usually physically challenging—installing tiles, climbing scaffolding, or carrying heavy pipes. Other less physically demanding jobs typically require workers to be well-versed in all parts of the construction process and to give instructions to mostly men on a daily basis. For some women, that might sound hard and intimidating.

Yet, at Arieli we often work with amazing women on our projects. We love when we can collaborate with and learn from talented women working in construction.

Over the years, we’ve met plenty of daughters who work side-by-side with their fathers—and wives who work with their husbands—lifting, moving and installing heavy materials. A lot of the women we work with tend to get into the industry because it’s their parent’s or their partner’s business. We’re always quick to encourage women working in construction.

There are tons of great reasons for women to get into construction, including:

1. Salary. The gender pay gap is significantly smaller in construction occupations, with women earning on average 99.1% of what men make.

2. Diversity. Most industries that were dominated by one gender in the past—chefs or teachers—have changed a lot in the last 20 years, and for the better. Construction is on its way, and the more women who join, the faster the workforce becomes more diverse.

3. Different points of view. It’s always great to have different perspectives on the job. We’ve found that often the women we’ve worked with approach problems from a different angle and can offer a fresh take on problem-solving.

One of the women we work with often is Marisol Suarez, who joins her tile worker father, Manuel, on the job. Manuel starting teaching Marisol his trade when she was little, and she loves the challenge of a picture-perfect installation and seeing results.

“As a woman working in this industry, it can be a challenge,” Marisol says, “but it's awesome to learn new things and feel I can accomplish the same things as a man. It's great working with my dad—he’s a huge inspiration to me—and it’s fun to build.” 

Perhaps the most difficult part of the work, says Marisol, is coming up against male workers who doubt her abilities. But she doesn’t let that stop her. “As long as we work hard and put in the effort, women are just as capable as men,” she says.