TL;DR
Get tools and workshop supplies 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 the total 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 reported by Hardware Retailing. The increase followed months of declines during the second quarter, but spending was still 4.8% below August 2025, leaving the monthly rise short of a full recovery on a year-over-year basis.
The August estimate covers private residential construction spending and is stated at a seasonally adjusted annual rate (SAAR). That rate expresses the month’s pace as an annualized figure; it is not the amount spent during August alone. The Census Bureau data showed an increase from July across all three residential categories cited in the report: remodeling, single-family construction and multifamily construction.
Improvement spending, a category that includes remodeling, increased 2.5% from July, the largest monthly gain among the sectors. Despite that rise, improvement spending was 7.4% lower than a year earlier. Single-family and multifamily construction spending each edged up 0.2% during August. Compared with August 2025, single-family spending was down 3.5%, while multifamily spending was down 0.6%.
The figures were reported by Hardware Retailing on October 2, citing the U.S. Census Bureau and an analysis from the National Association of Home Builders (NAHB). The report characterized the August increase as a rebound following second-quarter declines. The data establish the change in estimated spending; they do not, on their own, identify how much of the increase came from more construction activity, changes in project costs, or other factors.
August Rebound, Annual Decline
The month-to-month increase suggests that private residential construction spending regained ground in August after weakening during the second quarter. For builders, remodeling firms and businesses that supply construction materials, the figures offer a current measure of spending across several parts of the residential market. The gains were broad across the three categories in the report, but their scale differed: remodeling rose faster over the month, while single-family and multifamily construction recorded smaller increases.
The annual comparisons put the rebound in perspective. Total residential spending remained 4.8% below its year-earlier level, and the reported annual declines affected each category. That distinction matters to readers tracking whether the housing market is expanding or merely improving from a recent low: one month of growth is not evidence by itself of a sustained reversal. The figures point to a mixed picture rather than a uniform recovery.
NAHB’s analysis, as summarized by Hardware Retailing, linked softer single-family and multifamily spending to weak builder sentiment amid higher interest rates and costs. Those are the association’s explanations, not separate findings established by the spending totals. If borrowing costs or construction expenses continue to weigh on projects, builders and renovation businesses may remain cautious; the August release does not show whether those pressures eased or how they affected individual projects.
As an affiliate, we earn on qualifying purchases.
Three Sectors, Different Trends
The report describes private residential construction spending as having declined during the second quarter of 2026 before rising in August. The August figures therefore capture a monthly improvement after that period of weakness, but the source provides no detailed monthly series here to quantify the full second-quarter drop or show whether August returned spending to an earlier level.
Remodeling has had a longer-running source of support, according to the NAHB analysis: the aging U.S. housing stock and sustained demand for renovation. The analysis said improvement spending had generally trended upward since 2023, while also describing the latest figures as consistent with a soft patch for remodeling in 2026. The 2.5% August monthly gain and 7.4% annual decline illustrate why those time frames should not be conflated.
For new construction, the reported annual declines were larger for single-family than multifamily spending: 3.5% and 0.6%, respectively. Hardware Retailing attributed weakness in both segments largely to builder sentiment amid rising interest rates and costs, but supplied no survey results or cost breakdown alongside the spending figures. The report’s evidence is limited to the Census Bureau spending estimates and the NAHB’s interpretation of market conditions.
single-family home construction supplies
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
What One Month Cannot Show
The figures do not establish whether the August rise marks the start of a lasting recovery or a short-term fluctuation. The report does not provide enough detail to determine what drove the monthly increase, how spending was distributed among projects or regions, or whether revisions to earlier estimates will change the trend.
The source also does not quantify the effects of interest rates, construction costs or builder sentiment on the spending totals. Those factors are presented as explanations in the NAHB analysis, not as effects measured directly by the August spending release. The distinction between nominal spending and the volume of construction work is not discussed in the source material, so the figures should not be read as a direct measure of completed homes or renovation projects.
As an affiliate, we earn on qualifying purchases.
Upcoming Data Will Test Rebound
Subsequent Census Bureau construction-spending estimates will show whether private residential spending continued to rise after August and how the agency’s estimates compare with revised figures for earlier months. Later releases can also clarify whether the three residential sectors maintain their separate monthly trends or move in a different direction.
For now, the confirmed development is limited to an August increase alongside continued annual declines. The next months of data, together with any later analysis of builder conditions, will help establish whether the improvement was sustained; the reported figures do not yet settle that question.
construction project management software
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
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 reported by Hardware Retailing.
Was spending higher than it was a year earlier?
No. August spending was 4.8% below August 2025. The monthly increase and the annual decline compare the August estimate with different periods.
Which residential category had the largest monthly increase?
Improvement spending, which includes remodeling, rose 2.5% from July. It was still down 7.4% from a year earlier.
Did single-family and multifamily spending also increase?
Yes. Each rose 0.2% in August. Year over year, single-family spending was down 3.5% and multifamily spending was down 0.6%.
Does the August rise confirm a housing construction recovery?
No. It confirms a monthly increase in the reported spending estimate, but not a sustained recovery. Spending remained below its year-earlier level, and later data will be needed to show whether the rise continued.
Source: rss
Fall Picks
fall essentials
As an affiliate, we earn on qualifying purchases.
