Buy Us a Cup of Coffee

Malvern-based Research and Consulting Firm Initiates Coverage on COVID-19 Impact on Residential Construction Activity

Malvern-based Research and Consulting Firm Initiates Coverage on COVID-19 Impact on Residential Construction Activity

MALVERN, PA — Principia Consulting has initiated COVID-19 coverage to track and calibrate the impact of the coronavirus on residential construction down to the zip code level. This update provides interactive views of the rapidly changing market for new home construction.

Future updates will also include remodeling and repair and specific building product category impacts from the coronavirus. This analysis is fluid and will continue to evolve as COVID-19 progresses throughout the country and government restrictions are added or

COVID-19 New Construction Impact Map

Cities and states throughout the country are issuing stay-at-home (SAH) and shelter-in-place (SIP) ordinances specifying which businesses, including construction, are essential and non-essential. These ordinances are having an ongoing effect on construction activity and building products demand.

The United States was projected to build 2.7 billion square feet of new residential construction in 2020 prior to the impact of COVID-19. A complete review of the ordinances enacted to date shows the impact on construction activity by geography and the potential influence on building product demand and distribution. A few major takeaways include:

  • 4% of projected construction activity is in municipalities not currently under any legal restriction
  • 17% of projected activity is currently in municipalities that are prohibiting most forms of construction
  • 32% of multifamily activity falls within localities prohibiting most construction
READ:  May 24 Coronavirus Update: 2,390 Cases with 248 Deaths in Chester County from COVID-19

Very few unaffected municipalities remain. Most affected areas are currently along the Pacific Coast, North Atlantic Coast, and Great Lakes regions.

Principia's Pre COVID-19 2020 Projection

Principia’s ongoing COVID-19 coverage will monitor the impact on residential construction and building product demand including:

  • Frequent updates on government restrictions relating to construction activity
  • Estimates of the impact of COVID-19 on construction activity segmented by:
    • Single family vs. multifamily
    • New construction, discretionary remodeling, and emergency repair
  • Scenario analysis on impact of COVID-19 over time

In addition to tracking SAH/SIP ordinances, Principia is working to independently verify the status of construction exemptions while simultaneously monitoring COVID-19 case data to determine the impact on residential construction.

Principia’s research team is applying its econometric modeling to evaluate the impact on construction in each hot spot based on the timing of the start of the spread and the likely duration within each area.

READ:  Consumer Financial Protection Bureau Issues Consumer Complaint Bulletin During the COVID-19

For more information on this subscription service, visit

Thanks for visiting! MyChesCo brings reliable information and resources to Chester County, Pennsylvania. Please consider supporting us in our efforts. Your generous donation will help us continue this work and keep it free of charge. Show your support today by clicking here and becoming a patron.

Buy Us a Cup of Coffee