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 This advisory does not superseded state rulings.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

Economics
Oct 23, 2026
Multifamily Developers: How Are Rising Costs Impacting Your Business?

In 2022, NAHB estimated regulation accounts for over 40% of the cost of a new multifamily development — a key data point in lobbying federal, state and local policymakers against policies that drive up the cost of new housing. This widely cited estimate is now outdated, so NAHB is conducting a survey to update it and needs your help to do so.

Advocacy
Oct 23, 2026
Trump Issues Executive Order to Lower Housing Costs

President Trump on Oct. 22 signed an executive order to lower single-family and mortgage costs, and the Treasury Department released new institutional investor rules.

View all

Latest Economic News

Economics
Oct 22, 2026
Share of New Homes with Decks Inches Upward

The share of new homes with decks inched upward, from an all-time low of 17.4% in 2024 to 17.8% in 2025, according to NAHB tabulation of data from the HUD/Census Bureau Survey of Construction (SOC).

Economics
Oct 22, 2026
State-Level Employment Situation: September 2026

State-level employment data for September continued to show a mixed labor market, with job gains and losses split across the county. Although national nonfarm payroll employment increased modestly, year-over-year job growth varied considerably across states

Economics
Oct 21, 2026
Nearly One in Three Construction Workers are Hispanic

Diversifying the construction labor force remains a key priority amid persistent skilled labor shortages. According to NAHB analysis of the 2024 American Community Survey, non-Hispanic White workers account for the majority of the construction industry at 55.8%. Hispanic workers now represent nearly one-third of the labor force at 32.8%, followed by non-Hispanic Black workers at 5% and non-Hispanic Asian workers at 1.8 %.