TL;DR
Get furniture and decor 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 Hardware Retailing. Spending increased across remodeling, single-family and multifamily construction, but was 4.8% below August 2025.
Private residential construction spending rose 1.1% in August 2026 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 monthly increase followed declines during the second quarter, but spending remained 4.8% below August 2025.
The increase extended across all three residential categories in the report: improvement, or remodeling, spending, and spending on single-family and multifamily construction. Improvement spending rose 2.5% from July, the largest monthly gain. Single-family and multifamily construction spending each increased 0.2%.
The year-over-year figures were weaker. Remodeling spending was down 7.4% from August 2025, while single-family construction spending fell 3.5% and multifamily spending fell 0.6%. The overall residential total was down 4.8% from a year earlier.
The Census Bureau’s figure is reported at a seasonally adjusted annual rate, or SAAR. It expresses the August pace as an annualized rate after seasonal adjustment; it is not a claim that $882.3 billion was spent during August alone. The report gives monthly and annual percentage comparisons but does not provide the underlying unadjusted dollar totals for each category.
August Rebound, Annual Decline
The monthly rise offers a sign that residential construction spending regained ground after weakness during the second quarter. Because the increase appeared in remodeling and both building categories, it was not limited to one part of residential construction. Still, a single month of growth does not establish that the broader downturn has ended.
The year-over-year declines matter for builders, suppliers and hardware retailers whose sales depend on renovation projects and new housing activity. The reported figures show that spending remained below its year-earlier level, even as it improved from July. That mixed picture can inform how businesses read demand: the latest month was stronger, but the annual comparison remained negative.
The category differences also matter. Remodeling delivered the largest monthly increase, yet had the steepest year-over-year decline among the three categories. Single-family construction was down more over the year than multifamily construction. These figures describe spending, not the number of homes built, renovation projects completed, or future orders; the report does not establish how activity will change in coming months.
As an affiliate, we earn on qualifying purchases.
Second-Quarter Weakness and Remodeling
The NAHB analysis characterized the August increase as a rise following months of decline during the second quarter of 2026. It reported that single-family and multifamily spending remained below year-earlier levels, citing weak builder sentiment amid rising interest rates and costs as contributing factors. The source does not quantify the effect of either factor.
Remodeling has had a different longer-term pattern. The analysis said improvement spending had been on an upward trend since 2023, supported in part by an aging housing stock and continuing demand for renovation. It also described the latest data as consistent with a 2026 soft patch for remodeling. That assessment reflects the pattern described by NAHB; August’s monthly gain does not erase the category’s year-over-year decline.
The figures were published by the U.S. Census Bureau and covered private residential construction spending. Hardware Retailing reported the data on October 2, 2026, citing an NAHB analysis. The source material does not include a detailed series of earlier monthly values, so it is not possible from these figures alone to measure the size of the second-quarter declines.
One Month Does Not Set the Trend
The August data establishes a month-over-month increase, but it does not show whether that improvement continued after August. The source material does not provide subsequent monthly results, forecasts, or revised figures, so the durability of the rebound remains unknown.
The report also does not break down the spending changes by region, project type, or the number of homes and renovations involved. NAHB cited rising interest rates, costs and weak builder sentiment in discussing construction declines, but the supplied material does not quantify their separate effects or establish how much each influenced August’s results.
It is also unclear from the reported figures whether remodeling’s monthly gain marks a turn in its year-long performance. Spending in that category rose 2.5% from July but was still 7.4% lower than a year earlier. More monthly data would be needed to determine whether the August increase is part of a sustained recovery or a temporary improvement.
Watch the Next Monthly Release
The next Census Bureau construction-spending release will provide a further comparison for private residential activity and show whether the August increase continued. Readers can also watch for updated NAHB analysis of the single-family, multifamily and remodeling categories, particularly whether remodeling continues to diverge between its monthly and annual performance.
Until additional data is available, the clearest reading is limited to August: spending rose from July across all residential sectors, but the overall total and each category remained below their levels a year earlier. The supplied report does not state a date for the next release.
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 Census Bureau data cited by Hardware Retailing.
Was spending higher than it was a year earlier?
No. Overall private residential construction spending was 4.8% lower than in August 2025. Remodeling was down 7.4%, single-family construction was down 3.5%, and multifamily construction was down 0.6% year over year.
Which category had the largest monthly increase?
Improvement spending, or remodeling, had the largest monthly gain, rising 2.5% from July. Single-family and multifamily spending each increased 0.2%.
What does the $882.3 billion annual rate mean?
The figure is a seasonally adjusted annual rate based on August’s spending pace. It annualizes the rate for comparison and does not mean $882.3 billion was spent in August alone.
Does the August increase mean residential construction is recovering?
The data confirms a one-month increase after second-quarter declines, but it does not establish a sustained recovery. August spending was still below its year-earlier level, and later monthly figures are needed to show whether the improvement continued.
Source: rss
Evergreen bestsellers Picks
bestsellers
As an affiliate, we earn on qualifying purchases.
