Private residential construction spending rose in August 2026 following a series of declines during the second quarter of the year. 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 $882.3 billion in August, up 1.1% from July but down 4.8% from a year ago.
The increase in spending occurred across all residential sectors, with improvement (remodeling) spending posting the largest monthly gain at 2.5%. Over the year, however, remodeling spending was down 7.4%. Both spending on single-family and multifamily construction increased by 0.2% in August, but decreased 3.5% and 0.6% from a year ago, respectively. The decline in single-family construction spending is consistent with weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI), amid rising interest rates and cost.
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 data is consistent with a 2026 soft patch for remodeling.
Private nonresidential construction spending continued its upward trend. August’s spending rose 1.0% to a SAAR of $773.0 billion, although it remained 1.0% below the previous year. Data center construction, a subcategory within office construction, remained strong with spending increasing 7.5% month-over-month and 73.2% year-over-year, due to buildout of artificial intelligence infrastructure. The share of data centers as a percentage of spending on total private nonresidential construction surpassed 10% in July 2026.
