TL;DR
Get tools and workshop supplies delivered free — and shop member deals
- Fast, free delivery on millions of items
- Access to Prime Big Deal Days deals on October 6–7
- Prime Video, Amazon Music and more included
U.S. private residential construction spending rose 1.1% in August 2026 from July to a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau data reported by the National Association of Home Builders. Spending increased across remodeling, single-family and multifamily construction, but the total remained 4.8% below August 2025.
U.S. private residential construction spending rose 1.1% in August 2026 from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau figures cited in an analysis by the National Association of Home Builders. The increase followed declines during the second quarter, but spending was still 4.8% below its August 2025 level.
The August increase covered all three residential categories in the report: improvements, including remodeling; single-family construction; and multifamily construction. Improvement spending recorded the largest monthly gain, rising 2.5% from July. Despite that increase, it was down 7.4% compared with a year earlier.
Spending on single-family construction rose 0.2% in August, while multifamily construction spending also increased 0.2%. On a year-over-year basis, single-family spending was down 3.5%, and multifamily spending was down 0.6%, according to the figures summarized by NAHB.
The monthly and annual comparisons describe different periods: August spending grew from July, but remained below August 2025. The reported $882.3 billion figure is a seasonally adjusted annual rate, not the amount spent during August alone. The source report does not provide unadjusted dollar totals or separate figures for individual building materials, locations or project types.
A Monthly Rebound, Annual Weakness
The figures offer a mixed picture for the residential construction market. A broad monthly increase may indicate that spending stabilized after second-quarter declines, but the 4.8% annual decrease shows that activity had not returned to its level a year earlier. One month of growth alone does not establish that a sustained recovery is underway.
The distinction matters to contractors, building-material suppliers and hardware retailers whose sales can depend on new construction and renovation work. The August data show growth across each major residential category for the month, while the year-over-year declines point to continued softness compared with 2025. The report does not quantify how the changes affected sales, employment or project starts, so those consequences cannot be inferred from this spending release alone.
Remodeling had the strongest monthly increase, but its annual decline was also the largest of the three categories in the reported comparison. That gap is a reminder that a short-term gain can coexist with weaker longer-term spending. For businesses planning inventory or evaluating demand, the next releases will help show whether August was a temporary bounce or part of a broader change.
As an affiliate, we earn on qualifying purchases.
Second-Quarter Declines Set the Backdrop
NAHB’s analysis described the August rise as following months of decline during the second quarter of 2026. The source report does not list the monthly amounts or identify the exact duration of those declines, so the August data should be read as a reversal in the latest month rather than proof that the earlier weakness has ended.
For new single-family and multifamily building, the NAHB analysis pointed to weak builder sentiment amid rising interest rates and costs as factors behind the annual decreases. Those factors are the association’s explanation; the spending figures themselves show the changes in construction outlays and do not isolate the effect of any one cause.
Improvement spending has generally been on an upward trend since 2023, the report said, with support from an aging housing stock and sustained renovation demand. The August annual decline, however, was described as consistent with a soft patch for remodeling in 2026. That characterization reflects the report’s assessment of the data, not a guarantee about spending in subsequent months.
single-family home construction supplies
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
One Month Cannot Set the Trend
The August report does not establish whether the monthly rise will continue. It also does not provide a forecast, project-level breakdown or regional detail, leaving unclear where spending increased most and whether the gains were concentrated in particular types of work.
The data show spending changes, but not their direct causes. NAHB cited weak builder sentiment, higher interest rates and costs in discussing annual declines in new construction; the reported figures do not measure the contribution of each factor. Likewise, the report’s references to aging homes and renovation demand provide context for improvement spending rather than a quantified breakdown of why August changed.
It is also not clear from the source report how August’s figures may be revised in later releases. The annual-rate figure should not be treated as actual spending in the month, and the reported percentages do not say how individual firms or households experienced the change.
As an affiliate, we earn on qualifying purchases.
Watch the Next Census Release
The next monthly construction-spending release will show whether the August increase continued, faded or reversed. Readers and businesses can compare the next figures with both the prior month and the same month a year earlier, while keeping the annual-rate measure distinct from actual monthly outlays.
Further data may also clarify whether remodeling’s monthly gain marks a return to stronger activity or remains part of the soft patch described by NAHB. Until then, the confirmed picture is limited to August: spending increased from July across the reported residential sectors, while total residential spending and each category’s year-over-year comparisons remained below their year-earlier levels.
As an affiliate, we earn on qualifying purchases.
Key Questions
How much did private residential construction spending increase in August?
It rose 1.1% from July to a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau data cited by NAHB.
Was spending higher than it was a year earlier?
No. Total private residential construction spending was 4.8% lower than in August 2025, despite the monthly increase.
Which category had the largest monthly increase?
Improvement spending, including remodeling, rose 2.5% from July, the largest monthly gain among the categories in the report. It was still down 7.4% year over year.
Did single-family and multifamily spending also rise?
Yes. Spending in both categories increased 0.2% in August. Compared with a year earlier, single-family spending was down 3.5% and multifamily spending was down 0.6%.
Does the August increase show that residential construction is recovering?
Not by itself. The increase followed second-quarter declines, but one month of data cannot establish a lasting trend. Spending remained below its year-earlier level, and subsequent monthly releases will show whether growth continued.
Source: rss
Fall yard work Picks
leaf blowers
As an affiliate, we earn on qualifying purchases.
