TL;DR
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 cited by the National Association of Home Builders. Spending remained 4.8% below August 2025; all residential categories increased month over month, while each was down from a year earlier.
U.S. private residential construction spending rose 1.1% in August from July to 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 increase followed months of decline during the second quarter, but spending was 4.8% below August 2025, showing that the monthly rebound had not erased the year-over-year contraction.
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Every residential category covered in the report increased from July. Spending on home improvements and remodeling had the largest monthly gain, rising 2.5%. Single-family and multifamily construction spending each increased 0.2%, according to the figures summarized by the National Association of Home Builders.
The annual comparisons were weaker across the board. Remodeling spending was down 7.4% from a year earlier, while single-family construction fell 3.5% and multifamily construction declined 0.6%. These comparisons describe different periods: the monthly figures measure change from July, while the annual figures compare August 2026 with August 2025.
The data is reported as a seasonally adjusted annual rate, or SAAR. That measure expresses the pace of spending in August as an annualized rate; it is not the amount spent during August alone. The source report attributes the figures to the U.S. Census Bureau and says the National Association of Home Builders analyzed them.
August Rebound, Annual Decline
The increase offers a sign of improvement after residential construction spending declined during the second quarter, but the year-over-year drop shows the broader level of activity remained weaker than a year earlier. For builders, suppliers and hardware retailers, the contrast matters: a positive month does not by itself establish that demand has returned to its earlier pace.
The monthly gain was strongest in remodeling, a category with direct relevance to suppliers of building materials and home-improvement products. Yet remodeling was also down 7.4% year over year. The figures therefore point to a short-term rise alongside softer annual comparisons, rather than a clear, sustained recovery across residential construction.
The report links weakness in single-family and multifamily construction to builder sentiment amid rising interest rates and costs. Those factors can weigh on construction activity, although the available spending figures do not quantify how much each contributed. The data offers a snapshot of spending, not a direct measure of future projects or retail sales.
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Three Residential Spending Categories
The Census Bureau figures cover private residential construction spending and distinguish between single-family building, multifamily building and improvements, a category that includes remodeling. In August, all three rose month to month, but their year-over-year changes differed: single-family was down 3.5%, multifamily down 0.6%, and improvements down 7.4%.
The report describes improvement spending as having trended upward since 2023, supported in part by an aging housing stock and sustained renovation demand. It also says the latest data is consistent with a 2026 soft patch for remodeling. That characterization is the report’s interpretation of the recent pattern; the August increase alone does not establish the direction of spending in subsequent months.
The report, published by Hardware Retailing on October 2, 2026, presents the August data from the Census Bureau through an analysis by the National Association of Home Builders. Its discussion connects weaker homebuilding spending with builder sentiment, interest rates and costs, but does not provide separate estimates of those influences.
“All residential sectors saw an increase in the month, with improvement (remodeling) spending posting the largest monthly gain at 2.5%.”
— Hardware Retailing report
One Month Does Not Set the Trend
The August release shows spending increased from July, but it does not establish whether the rise will continue. The source material does not give September figures, detail any later revisions, or provide a forecast for construction spending. It also does not break down the effects of interest rates, construction costs or builder sentiment on the reported changes.
The annualized $882.3 billion figure is a seasonally adjusted rate, not a tally of August outlays. Readers should also distinguish the reported category-level changes from broader measures of housing demand: this release covers construction spending and does not, by itself, show home sales, permit activity, employment or future renovation plans.
Watch for the September Spending Report
The next monthly Census Bureau construction-spending release will show whether the August increase continued, reversed or flattened. The upcoming figures will also allow comparison of monthly and year-over-year changes across remodeling, single-family and multifamily construction.
Until those data are available, the confirmed picture is limited to August: spending rose from July in every residential category but remained below its level a year earlier. Any claim of a sustained recovery would require subsequent data to support it.
Key Questions
How much did private residential construction spending increase in August?
It rose 1.1% from July to a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau data cited in the report.
Was spending higher than it was a year earlier?
No. Total private residential construction spending was 4.8% lower than in August 2025.
Which category had the biggest monthly increase?
Improvement spending, which includes remodeling, rose 2.5% from July. Single-family and multifamily construction each increased 0.2%.
Why did homebuilding spending remain weak?
The report says weaker single-family and multifamily spending was associated with subdued builder sentiment amid rising interest rates and costs. It does not quantify the contribution of each factor.
Does the August increase mean construction spending is recovering?
Not on its own. August spending increased month to month, but remained below the year-earlier level. Later monthly data will help show whether the gain persists.
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