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Private residential construction spending rose 1.1% in August 2026 from July to a seasonally adjusted annual rate of $882.3 billion, according to the U.S. Census Bureau. Spending increased across remodeling, single-family and multifamily construction, though the total remained 4.8% below August 2025.
Private residential construction spending in the United States rose 1.1% in August from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to U.S. Census Bureau data cited in an analysis by the National Association of Home Builders. The increase followed months of decline in the second quarter, but spending was still 4.8% lower than in August 2025.
Each of the three residential categories covered in the report recorded a monthly increase. Spending on home improvements and remodeling rose 2.5% from July, the largest monthly gain among the categories. Single-family construction spending increased 0.2%, and multifamily construction spending also rose 0.2%.
The year-over-year figures were lower across all three categories. Remodeling spending was down 7.4% from August 2025. Single-family construction spending fell 3.5% over the same period, while multifamily spending declined 0.6%. The Census Bureau’s $882.3 billion figure is an annualized rate adjusted for seasonal patterns; it is not the amount spent during August alone.
The NAHB analysis linked weakness in single-family and multifamily construction to low builder sentiment amid rising interest rates and costs. It also described improvement spending as having generally trended upward since 2023, with support from an aging housing stock and continuing renovation demand. The association said the August figures fit a softer period for remodeling in 2026.
August Gains Across Homebuilding Sectors
The monthly rise offers a sign of improvement after residential construction spending declined during the second quarter. Because the increase appeared across remodeling, single-family and multifamily work, it was not limited to one segment. Still, the year-over-year declines show that the sector had not returned to its August 2025 spending level.
For hardware retailers and suppliers, the category mix is relevant because remodeling, new single-family construction and multifamily projects can generate different kinds of demand for materials and home products. The August report shows a stronger monthly reading for improvement spending than for new housing construction, but its 7.4% annual decline cautions against treating that month’s rise as proof of a sustained recovery. The data measures construction spending; it does not directly report sales, orders or future activity for individual retailers.
Interest rates and project costs remain factors identified in the NAHB analysis for builders. The release does not quantify how much either factor affected August spending, or establish that they caused every change in the reported categories. The figures give a snapshot of outlays, while later releases will show whether the monthly increase continues.
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Second-Quarter Declines Set the Backdrop
The August increase came after months of decline during the second quarter of 2026, according to the NAHB analysis. That sequence puts the latest reading in perspective: it marks a monthly rebound in the reported total, but does not by itself establish a reversal of the broader weakness.
The categories have also followed different longer-term patterns. The analysis says improvement spending had been on an upward trend since 2023, supported in part by older housing stock and sustained renovation demand. Yet it characterizes the latest 2026 data as consistent with a soft patch for remodeling. Single-family and multifamily spending, meanwhile, both posted small month-to-month gains in August while remaining below their year-earlier levels.
The numbers come from the U.S. Census Bureau and are presented as seasonally adjusted annual rates. Seasonal adjustment is intended to make monthly comparisons more useful by accounting for recurring patterns during the year. The annualized rate expresses the pace implied by that month’s spending if it continued for a full year; it is not a forecast that spending will stay at that level.
One Month Does Not Set the Trend
The report does not show whether August’s increase continued in September or whether the second-quarter declines have ended. It also does not provide a detailed breakdown of the causes behind each category’s monthly or annual change. The NAHB analysis points to builder sentiment, interest rates and costs as relevant pressures, but the published figures do not isolate their individual effects.
It remains unclear from this release whether remodeling’s 2.5% monthly rise signals a return to sustained growth or a temporary increase within the 2026 soft patch described by NAHB. The report also does not quantify the separate contributions of home age and renovation demand to improvement spending. Subsequent monthly data will be needed to show whether the August movement persists.
Upcoming Releases Will Test the Rebound
The next Census Bureau construction-spending release will provide a comparison for September and show whether residential outlays advanced again, held steady or fell. Updated figures can also revise earlier monthly estimates. Readers watching housing activity can compare those releases with changes in interest rates, construction costs and builder sentiment, while keeping the spending data separate from measures of home sales or retail demand.
For now, the August figures establish a monthly increase and a continuing year-over-year decline. A longer run of data will be needed to determine whether the rise signals a broader recovery in residential construction or a brief interruption in the declines recorded during the second quarter.
Key Questions
How much did private residential construction spending rise in August?
It rose 1.1% from July to a seasonally adjusted annual rate of $882.3 billion, according to U.S. Census Bureau data.
Which residential spending category had the largest monthly gain?
Improvement, or remodeling, spending increased 2.5% from July, the largest monthly rise among the three categories in the report.
Was spending higher than a year earlier?
No. Total private residential construction spending was 4.8% below August 2025. Remodeling was down 7.4%, single-family spending was down 3.5%, and multifamily spending was down 0.6% year over year.
Does the $882.3 billion figure mean that amount was spent in August?
No. It is a seasonally adjusted annual rate based on August’s pace, rather than the amount spent during that month.
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