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U.S. private residential construction spending reached a seasonally adjusted annual rate of $882.3 billion in August 2026, up 1.1% from July, according to Census Bureau data cited by the National Association of Home Builders. Spending rose in remodeling, single-family and multifamily construction, but the total was 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 U.S. 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 August 2025.
All three residential spending categories tracked in the report increased from July. Remodeling and improvement spending rose 2.5%, the largest monthly gain. Spending on single-family and multifamily construction each increased 0.2%.
The year-over-year figures were weaker. Improvement spending was down 7.4% from August 2025, while single-family construction spending fell 3.5%. Multifamily spending was down 0.6% over the same period. The August increases therefore mark a monthly rise, not a return to year-earlier levels.
The figures are expressed at a seasonally adjusted annual rate, or SAAR: the August pace is stated as if it continued for a full year, with seasonal effects adjusted. It is not a measure of the amount spent in August alone. The source report attributes the data to the Census Bureau and describes the NAHB analysis; it does not provide a dollar breakdown for each category.
A Monthly Rebound, Not a Full Recovery
The August increase offers a sign of improvement after a period of declines, but the annual comparison shows that residential construction spending remains under pressure. For builders, contractors and suppliers, the distinction matters: a month-to-month gain can signal a change in direction, while spending below the prior year’s level points to a softer market than a year earlier.
The categories also moved by different amounts. Remodeling led the monthly gains, while single-family and multifamily construction posted smaller increases. Retailers and other businesses serving residential projects may find the split useful when tracking demand, but the data alone does not show how spending is distributed across products, regions or individual firms. It also does not establish that the August rise will continue.
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Different Trends Across Housing Work
The NAHB analysis says residential construction spending declined during the second quarter of 2026 before rising in August. It describes remodeling and improvement spending as having generally trended upward since 2023, supported in part by an aging housing stock and continued renovation demand. The association also says the latest figures are consistent with a soft patch in remodeling during 2026.
For new construction, the report points to rising interest rates and costs, alongside weak builder sentiment, as factors associated with the year-over-year declines in single-family and multifamily spending. Those are explanations provided in the source analysis; the August spending data itself measures spending and does not independently establish the cause of the changes.
What One Month Cannot Show
The August figures do not establish whether the rebound will persist, or whether residential spending will return to its August 2025 level. The provided report does not include the September estimate, revisions to earlier monthly data, regional results or detailed dollar totals for each residential category. It also does not quantify how much interest rates, construction costs or builder sentiment contributed to the year-over-year changes.
The increase is a comparison with July, while the annual declines use August 2025 as the baseline. Those different comparison periods should not be treated as interchangeable. Further data will be needed to show whether the monthly improvement reflects a lasting pickup or a short-term change.
September Data Will Test the Gain
The next useful indicator will be the Census Bureau’s subsequent construction-spending release, which can show whether the August rise continued into September and whether prior estimates were revised. Later monthly reports will also help clarify whether remodeling remains in a soft patch and whether single-family and multifamily spending can narrow their year-over-year declines.
Until those figures are available, the confirmed picture is limited to August: spending rose from July across all three reported residential sectors, led by improvement work, while the overall total and each category remained below their year-earlier levels.
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 data cited by the NAHB analysis.
Was spending higher than it was a year earlier?
No. Total private residential construction spending was 4.8% lower than in August 2025. Remodeling, single-family and multifamily spending were also below their year-earlier levels.
Which residential category had the largest monthly increase?
Improvement, or remodeling, spending had the largest reported monthly gain, rising 2.5% from July. Single-family and multifamily construction spending each rose 0.2%.
What does the $882.3 billion figure represent?
It is a seasonally adjusted annual rate, meaning the August spending pace is presented as an annualized figure with seasonal effects adjusted. It is not the amount spent during August alone.
Does the August increase mean spending is recovering?
The release confirms a month-to-month increase after second-quarter declines, but it does not establish a sustained recovery. Spending remained below its August 2025 level, and later monthly data will show whether the increase continued.
Source: rss
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