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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 data cited by the National Association of Home Builders. Spending increased across remodeling, single-family and multifamily work during the month, but remained 4.8% below August 2025.
U.S. private residential construction spending rose 1.1% in August 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 monthly gain followed declines during the second quarter, but spending was still 4.8% below its August 2025 level.
The Census Bureau’s estimate is stated at a seasonally adjusted annual rate (SAAR): it annualizes the August pace after seasonal adjustment and is not a measure of the amount spent during August alone. The reported month-to-month change was an increase of 1.1% from July, while the year-over-year comparison remained negative.
All three residential categories covered in the report—improvement, single-family and multifamily construction—recorded monthly increases. Improvement, or remodeling, spending had the largest monthly gain, rising 2.5% from July. Single-family and multifamily construction spending each increased 0.2%.
The annual comparisons were weaker. Remodeling spending was down 7.4% from August 2025, while single-family spending declined 3.5% and multifamily spending fell 0.6%, according to the figures summarized by the NAHB. The monthly uptick, then, marked a short-term improvement rather than a return to year-ago spending levels.
A Monthly Rebound, Still Below 2025
The August increase offers a sign that residential construction outlays strengthened after a weaker second quarter, but the 4.8% annual decline shows that the overall sector had not regained its previous-year level. The difference between those measures matters: a rise from one month to the next does not by itself establish a sustained recovery.
Spending trends are relevant to home builders, remodelers, building-material suppliers and retailers, since changes in construction activity can affect demand for labor and products. The category breakdown also points to different conditions across the market: remodeling recorded the strongest monthly gain, while all three categories remained below their year-earlier levels.
The NAHB analysis linked the declines in new single-family and multifamily construction spending in part to weak builder sentiment amid rising interest rates and costs. That explanation is the association offered by the trade group, not a separate finding established by the spending totals alone.
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Second-Quarter Declines and Remodeling
The NAHB’s October 2 analysis described the August increase as following months of decline during the second quarter of 2026. The August figures therefore provide a monthly counterpoint to that earlier pattern, although one month of higher spending does not establish whether the direction has changed.
Remodeling has had a different longer-term pattern from new construction. The NAHB analysis said improvement spending had been on an upward trend since 2023, supported in part by aging housing stock and sustained renovation demand. It also characterized the latest data as consistent with a 2026 soft patch for remodeling: August remodeling outlays increased from July but were down 7.4% from a year earlier.
The report’s figures come from the U.S. Census Bureau; the NAHB provided the analysis and industry context. The available material does not give detailed project counts or explain how much of the monthly movement reflects changes in prices, project volume or other factors.
One Month Does Not Set the Trend
The August figures establish a monthly increase in estimated spending, but do not show whether gains continued in September or will persist in later releases. It remains unclear from the source material whether the second-quarter decline has ended or whether August represents a temporary movement.
The reported totals also do not separate changes in the amount of construction activity from changes in costs or prices. The NAHB cited interest rates, costs and builder sentiment as factors behind weaker new-construction spending, but the supplied data does not quantify each factor’s contribution. No project-level breakdown, revised estimate details or September results were provided.
September Data Will Test Momentum
The next useful comparison will be the Census Bureau’s September construction-spending estimate, when available. It can show whether the August monthly rise continued across residential categories or was followed by another decline. Readers can also compare the next release’s annual rates with August’s 4.8% overall year-over-year decrease.
Until those figures are published, the August report supports a limited conclusion: private residential spending rose from July, but remained below its year-earlier level. Further monthly data will clarify whether the improvement signals a sustained shift or a brief rebound.
Key Questions
How much did private residential construction spending rise in August?
It increased 1.1% from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau figures cited by the NAHB.
Was spending higher than 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, or remodeling, spending rose 2.5% from July, the largest monthly gain among the residential categories in the report.
Did every residential category rise in August?
Yes. Improvement, single-family and multifamily spending all increased month to month. Single-family and multifamily construction each rose 0.2%.
Does the August increase confirm a recovery?
No. The data show a single monthly increase, while spending remained below its year-earlier level. Subsequent monthly estimates are needed to determine whether the gain continues.
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