America is facing extraordinary challenges: A near-complete shutdown of whole sectors of the economy, millions of jobs lost, and deep declines in the stock markets. As the nation practices social distancing to slow the spread of the novel coronavirus, COVID-19, the NAHB is doing all it can to support its members through this unparalleled economic slowdown.
Efforts include policy advocacy as officials at all levels of government seek solutions to the public health crisis and the subsequent economic challenges. Our federal legislative affairs team, for example, worked closely with members of Congress as they shaped the details of the $2.2 trillion stimulus that President Donald Trump signed into law.
While NAHB staff members are working remotely, they have been keeping members informed about the evolving policy, public health, and economic landscape. The association’s online resources page, NAHB.org/coronavirus, is updated multiple times each day. The page provides a wide range of resources, including economic forecasts, business continuity information, consumer content, and materials that explain how builders, remodelers, and other small businesses can take advantage of lending programs and other key aspects of the federal stimulus package.
The association has hosted town hall meetings and webinars for members, and has provided job safety and recordkeeping guidance to help them keep their businesses open.
So far, we know our nation’s unprecedented response to this pandemic is already having a negative impact on the economy. Despite housing’s strong start to the year, millions of new jobless claims due to service sector shutdowns and government-imposed social distancing guidelines have dampened consumer confidence.
The NAHB economics team has been working to assess the effects of social distancing on the housing industry and on the broader economy. Robert Dietz, NAHB chief economist, is forecasting second quarter GDP will see its worst performance in decades. The third quarter will also see a significant decline, despite meaningful mitigation efforts.
While this downturn will be sharp, it may also be short. History suggests a robust rebound will follow this considerable but temporary economic shock. As the old saying goes, “As goes housing, so goes the economy.”
In that vein, our legislative advocacy efforts secured a big win for NAHB and the housing industry when the Department of Homeland Security designated residential construction as “essential critical infrastructure workforce.” It is important to note that the federal guidance does not supersede state or local orders, and the safety and health of all those who work in construction remains NAHB’s top priority. We are confident home building will help fuel an economic recovery.
We’re proud of our members who donated unused N95 respirator masks and similar personal protective equipment to healthcare workers fighting against the coronavirus. In these trying times we encourage you to stay connected not only with NAHB but also with each other. We are all in this together.
