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U.S. private residential construction spending increased 1.1% in August 2026 from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to Census Bureau data reported by Hardware Retailing. Spending rose across remodeling, single-family and multifamily categories for the month, but total residential spending remained 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 figures cited by Hardware Retailing. The increase followed months of declines during the second quarter, but spending was still 4.8% below its level a year earlier.
All three residential categories covered in the report recorded a monthly increase. Improvement spending, a category that includes remodeling, 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 was down 3.5% and multifamily construction was down 0.6%. Those comparisons show that August’s monthly gains did not restore spending to the level recorded a year earlier.
Hardware Retailing reported the figures on October 2, citing an analysis from the National Association of Home Builders (NAHB) and data from the Census Bureau. The $882.3 billion figure is a seasonally adjusted annual rate, not the amount spent during August alone; it expresses the month’s pace as an annualized estimate.
A Monthly Rebound, Still Below Last Year
The August increase offers a sign that spending stabilized or improved from July after weakness in the second quarter, but the annual comparison cautions against reading one month’s rise as a broad recovery. The total remained 4.8% lower than a year earlier, and each category’s year-over-year figure was also below its prior-year level.
For builders, remodelers and businesses that supply construction materials, the category mix matters. Remodeling recorded the strongest monthly rise, while single-family and multifamily construction posted smaller gains. Yet remodeling was also down 7.4% year over year, underscoring that monthly movement and longer-term conditions tell different parts of the story.
The report links weaker new-home construction to rising interest rates and costs, alongside weak builder sentiment. These pressures can weigh on construction activity and affect demand for products and services used in building and renovation. The August release provides a snapshot of spending, not a forecast of future activity.
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How August Fits the 2026 Pattern
According to the NAHB analysis described by Hardware Retailing, private residential construction spending had declined during the second quarter of 2026 before rising in August. The latest monthly gain therefore marks a change from those recent declines, though the source material does not provide figures for each intervening month.
The report describes improvement spending as having trended upward since 2023, supported in part by an aging housing stock and continuing demand for renovation. It also says the latest data is consistent with a soft patch for remodeling in 2026. Those longer-term observations help explain why remodeling’s recent pattern may differ from new single-family and multifamily construction, but August itself showed a year-over-year decline in that category.
The underlying figures come from the U.S. Census Bureau; the NAHB analyzed them, and Hardware Retailing summarized the analysis. The source material provides the reported rates and comparisons but does not include the full underlying table or additional detail about the methodology beyond identifying the annualized, seasonally adjusted measure.
“The latest data is consistent with a 2026 soft patch for remodeling.”
— Hardware Retailing, summarizing the report’s discussion of remodeling
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What One Month Cannot Establish
The August release does not show whether the monthly increase will continue in subsequent reports or mark a lasting turn after second-quarter declines. It also does not explain how much of August’s increase reflects a change in construction activity versus other factors affecting the spending estimate.
The source material identifies higher interest rates, costs and weak builder sentiment as reasons for declines in single-family and multifamily construction, but it does not quantify the contribution of each factor. It likewise gives no detailed breakdown by region, project type or specific remodeling activity. The annualized spending rate should not be mistaken for a direct measure of August cash outlays or a count of homes built.
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Watch the Next Census Release
The next monthly construction-spending data will help show whether August’s increase continued or reversed. Readers can compare the next release with both July and the same month a year earlier to distinguish short-term movement from the broader annual trend.
Further releases may also clarify whether improvement spending continues to diverge from single-family and multifamily construction. Until then, the confirmed picture is limited to August: all three reported residential categories rose month to month, while total spending and each category remained below their year-earlier levels.
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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 the 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% below August 2025. Remodeling, single-family and multifamily spending were also down year over year.
Which category had the largest monthly increase?
Improvement spending, including remodeling, rose 2.5% from July. Single-family and multifamily construction spending each increased 0.2%.
Does the $882.3 billion figure represent August spending alone?
No. It is a seasonally adjusted annual rate, an annualized estimate based on the reported pace, rather than the amount spent during August itself.
What does the report say is weighing on new residential construction?
The report attributes weakness in single-family and multifamily construction largely to rising interest rates and costs and weak builder sentiment. It does not quantify the effect of each factor.
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