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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 Hardware Retailing. Spending increased across remodeling, single-family and multifamily work, 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 and reported by Hardware Retailing on October 2. Despite the monthly increase across all residential categories, total spending was 4.8% below August 2025.
The monthly rebound followed months of decline during the second quarter, according to the NAHB analysis, amid a broader construction jobs downturn documented in August construction job openings. August gains appeared in improvement, or remodeling, spending and in both single-family and multifamily construction. The figures describe spending at a seasonally adjusted annual rate, rather than the amount spent solely during August.
Improvement spending recorded the largest monthly gain, increasing 2.5% from July. But it was still down 7.4% compared with a year earlier. Single-family and multifamily spending each rose 0.2% month over month. On an annual basis, single-family spending fell 3.5%, while multifamily spending declined 0.6%, the report said.
The data therefore show a month-to-month improvement, not a return to year-earlier spending levels. All three categories were higher than in July, but each remained below its August 2025 level. The source does not provide dollar totals for the individual categories or identify how much each contributed to the overall monthly increase.
August Gains Across Homebuilding
The increase offers a measure of improvement after weakness during the second quarter, but the annual comparison shows that residential construction spending remains under pressure. For builders, contractors and suppliers, changes in spending can indicate whether activity in new home construction and renovation is strengthening or easing. The August release points to a broad monthly rise, while the year-over-year declines caution against treating one month’s data as a sustained recovery.
Remodeling’s 2.5% monthly increase stands out because improvement work led the month’s gains. Yet its 7.4% annual drop means the rebound did not erase the decline from a year earlier. The figures matter to retailers and other businesses serving the housing market because spending trends across new construction and renovation can shape demand for materials and related services; the release does not quantify any direct effect on sales.
NAHB’s analysis attributes weakness in single-family and multifamily construction to factors including rising interest rates and costs and weak builder sentiment. Those are the association’s explanations, not separate conclusions established by the spending figures. The data report how spending changed, but do not by themselves determine why it changed or establish what future activity will be.
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Second-Quarter Declines and Remodeling
Hardware Retailing’s October 2 report said private residential spending had fallen during the second quarter of 2026 before August’s month-over-month rise. It described improvement spending as having been on an upward trend since 2023, supported in part, according to the NAHB analysis, by an aging housing stock and sustained renovation demand.
The latest August result complicates that longer trend: remodeling spending rose 2.5% from July but fell 7.4% from August 2025. The report characterizes the data as consistent with a soft patch for remodeling in 2026. That description reflects the analysis of the figures; the reported numbers alone do not establish whether the weakness will continue.
The spending estimates come from the U.S. Census Bureau, while the NAHB provided the analysis cited in the trade publication’s report. The annualized, seasonally adjusted figure is designed to express the August pace as a yearly rate and should not be read as actual construction spending during the month.
“Private residential construction spending was reported at a seasonally adjusted annual rate of $882.3 billion in August, up 1.1% from July but down 4.8% from a year ago.”
— Hardware Retailing, reporting the Census Bureau data
Limits of the August Spending Data
The August release covers one month and does not establish whether the increase will continue. The source material does not provide September figures, revised estimates, category-level dollar amounts or a detailed breakdown of what drove the monthly change. It is also not clear from the reported figures how much of the overall increase came from each residential category.
The NAHB analysis cites rising interest rates, costs and weak builder sentiment as factors affecting single-family and multifamily spending. The report does not quantify each factor’s effect or isolate it from other influences. Nor does it provide a forecast for construction spending in the months ahead. The statement that remodeling is in a 2026 soft patch is an interpretation of the current data, not confirmation of the full-year outcome.
Next Monthly Census Estimates
The next useful comparison will be the Census Bureau’s subsequent monthly construction-spending estimates, which can show whether the August rise continued or reversed. Readers can compare later month-over-month and year-over-year results across improvement, single-family and multifamily spending to see whether the categories move together.
For now, the confirmed development is limited to August: total private residential spending rose from July but stayed below its level a year earlier. The source report does not specify a date for the next release or provide a forward estimate, so the direction of spending after August remains unknown.
Key Questions
How much did private residential construction spending rise in August?
It increased 1.1% from July to a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau figures cited by Hardware Retailing.
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, or remodeling, spending had the largest monthly gain, rising 2.5% from July. It was down 7.4% compared with a year earlier.
Did single-family and multifamily spending also increase?
Yes. Each rose 0.2% from July. Compared with August 2025, single-family spending was down 3.5% and multifamily spending was down 0.6%.
Does the August increase show that construction spending is recovering?
Not on its own. August spending rose from July after second-quarter declines, but remained below its year-earlier level. The figures do not establish whether the monthly gain will continue.
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