Private residential construction spending rose modestly in May 2026, marking the third consecutive month of gains, albeit at a slower pace. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $930.2 billion in May, up 0.3% from April and up 1.8% from a year ago.
The increased spending was driven by improvement (remodeling) spending, which was the only residential sector that posted a monthly increase. Remodeling spending rose 0.9% over the month and 8.1% over the year. Single-family construction spending decreased 0.1% in May, consistent with the weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI); on a yearly basis, single-family spending is down 4.0%. Multifamily construction spending also edged down 0.1% from April, though it is up 3.3% from a year ago.
The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.
Spending on private nonresidential construction was down 0.3% in May and down 6.6% from a year ago. Meanwhile, spending on data centers is still increasing, albeit at a slower pace, up 0.6% month-over-month and 23% year-over-year.
