Private residential construction spending declined 0.3% in June, while substantial downward revisions to improvement (remodeling) spending significantly altered the sector’s recent trajectory. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $877.1 billion in June, down 0.3% from the revised May estimate and 4.7% lower than a year earlier. May’s monthly change was also revised downward, from an initially reported 0.3% increase to a 0.3% decline.
Although remodeling was the only residential category to increase in June, the gain was modest at 0.1%. When compared to a year ago, spending has declined 7.2%. The latest April and May estimates have also been revised significantly lower by the Census. April’s month-over-month change was revised from a 1.6% increase to a 10.1% decline, while May’s change was revised from a 0.9% increase to a 0.4% decline. On a year-over-year basis, April was revised from a 10.0% increase to a 2.6% decline, and May was revised from an 8.1% increase to a 5.5% decline.
Revisions to single-family and multifamily construction spending were minor and did not alter the direction of their monthly movements. In June 2026, single-family construction spending decreased 0.6% in June, 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 3.3%. Multifamily construction spending also decreased 0.7% from May, and 1.5% 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 2023, supported in part by the aging housing stock and sustained demand for renovation. However, the latest revision indicates that a slowdown could be happening in 2026.
For private nonresidential construction, spending increased 0.1% in June to a SAAR of $745.3 billion but remained 4.7% below its year-earlier level. Meanwhile, spending on data centers, a subcategory within office construction remained strong, increasing 7.0% month-over-month and 45.8% year-over-year. The share of data centers as a percentage of spending on office construction has grown from 45.8% a year ago to 59.0% in June 2026.
