DHS Designation for Home Building as ‘Essential’ is Not Mandatory

Advocacy
Published

As NAHBNow previously reported, the Department of Homeland Security (DHS) on March 28 designated construction of single-family and multifamily housing as an “Essential Infrastructure Business.” Although the original post noted that this designation was not mandatory, there has been some confusion on what exactly it means.

The DHS states that its “designation is advisory in nature. It is not, nor should it be considered, a federal directive or standard. Additionally, this advisory list is not intended to be the exclusive list of critical infrastructure sectors, workers, and functions that should continue during the COVID-19 response across all jurisdictions. Individual jurisdictions should add or subtract essential workforce categories based on their own requirements and discretion.”

In other words, there is no mandatory federal order on what constitutes an essential business. This is guidance from DHS that individual states may follow. Many states have implemented their own rules in determining what type of business is considered essential. This advisory does not superseded state rulings.

However, the DHS designation for residential construction as an essential business is still very good news for our industry. For states that follow federal guidance in determining an Essential Infrastructure Business, single-family and multifamily construction will be included. For states that make their own rules, there is a possibility that residential construction may not be on their “essential” list.

NAHB will continue to keep you updated on all new developments and we continue to urge all states to adopt the DHS designation list for Essential Infrastructure Business during this outbreak.

To help members determine where builders can stay on the job, NAHB has created a map detailing which states and municipalities have enacted orders that may impact builders.

As many construction workers across the nation continue to stay on the job, their safety and health remains our top priority. The industry continues to adhere to all public health guidelines set forth by the Occupational Safety and Health Administration and the Centers for Disease Control. Working on a new unfinished home site occurs primarily outdoors and does not involve going onto a location occupied by residents or a public location, and there is minimal (if any) physical or transactional contact with customers. If work does continue on home building sites, NAHB urges members to follow job site coronavirus safety guidance recently published by the Construction Industry Safety Coalition (of which NAHB is a key member).

You can access the latest NAHB news and business resources to respond to this challenge at the Coronavirus Preparedness and Response section on nahb.org.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Membership
Sep 24, 2026
NAHB Mourns the Passing of Past Chairman Tom Woods

Tom Woods, 2015 NAHB chairman, passed away on Monday, Sept. 21. A Blue Springs, Mo.-based home builder and its former mayor, Woods served as president of Woods Custom Homes.

Economics
Sep 24, 2026
New Home Sales Rise as Affordability Challenges Continue

Sales of newly built single-family homes increased 6.4% in August to a seasonally adjusted annual rate of 684,000, following an upwardly revised July estimate, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales was 2% lower than a year earlier.

View all

Latest Economic News

Economics
Sep 24, 2026
Single-Family Detached Homes Still Dominate Among the 55+ Population

Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. In 2024, around 103 million Americans were ages 55 or older, ranging from adults still in the labor force to retirees.

Economics
Sep 23, 2026
Number of Bathrooms in New Single-Family Homes in 2025

Single-family homes started construction in 2025 typically had two full bathrooms, according to the U.S. Census Bureau’s Annual Survey of Construction.

Economics
Sep 23, 2026
Q2 2026 Remodeling Market Update: Labor and Nonlabor Input Costs

The remodeling industry is taking on a larger role within the residential construction sector. Structural tailwinds, such as an aging housing stock, the growing trend of aging-in-place among older home owners, and record-high housing wealth, will continue to grow remodeling’s market share further.