Stat of the Week: Residential construction

Principia Consulting’s analysis measures the impact of lockdowns.

BY HBSDealer Staff

According to Principia Consulting’s ongoing COVID-19 analysis, 88% of the $410 billion in residential new construction spending originally planned for 2020 is still projected to occur if social distancing guidelines last for 75 days.

在线精品国产在线视频The company says that projecting the impact of COVID-19 on new construction involves a good deal of uncertainty. For one thing, there’s no way to know the duration of governmental restrictions, There’s also varying degrees of impact of these restrictions on the ground. “Measuring the impact of the crisis accurately may take weeks or months depending in when data is released,” Principia said.

But by looking at Principia’s housing projections for 2020 and layering on each state’s annual demand and the status and start dates of government regulations, Principia has built a framework for its projections.

April-July are the busiest months for new construction activity, accounting for 37% of starts over the past 5 years, the company said.

Also, the Middle Atlantic and Pacific divisions have the highest percentage loss of activity under most scenarios.

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