The COVID-19 pandemic has severely disrupted construction, made it difficult for many households to pay for shelter, and seriously hurt the housing sector. Governments have responded with a wide array of measures to protect tenants and mortgage-holders, as well as support builders and lenders. This note mobilises web-search data to shed new light on the impact of the crisis on the construction sector. It then takes stock of measures taken by governments and argues that some of the relief could, if not duly phased out as planned, create unintended inefficiencies and notably make housing supply less responsive to changes in demand and the evolving needs of society. The note concludes by building on recent empirical findings that stress the importance of gradually transitioning from immediate rescue measures to policy settings that can support the recovery and the development of efficient, inclusive and sustainable housing markets.
