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 This advisory does not superseded state rulings.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

Safety
Oct 16, 2026
The Importance of Safety Guardrails on a Home Building Site

Join NAHB and its official safety sponsor, Builders Mutual, as we celebrate the seventh annual Guardrail Safety Week, Oct. 19-23, and be part of the difference proper guardrail use makes in protecting workers and saving lives.

Material Costs
Oct 16, 2026
U.S. Cuts Duties on Canadian Lumber

Following its annual review, the U.S. Department of Commerce lowered antidumping and countervailing duties on Canadian softwood lumber imports from about 35.16% to 24.75%.

View all

Latest Economic News

Economics
Oct 16, 2026
Single-Family Permitting Declines Through August

Single-family permitting activity continued to soften through the first eight months of 2026, while multifamily permitting remained stronger compared with the same period last year.

Economics
Oct 16, 2026
Research Highlights the Broad Benefits of Homeownership

A rich, peer-reviewed academic literature finds that homeownership produces benefits that extend well beyond house-price appreciation.

Economics
Oct 15, 2026
Building Material Price Inflation Nears Four Year High

The Producer Price Index for final demand was up 1.3% in September, after rising 0.5% in August. Compared to a year ago, final demand prices were up 6.3%.