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Private residential construction spending rose 1.1% in August 2026 from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to the U.S. Census Bureau. Spending increased across remodeling, single-family and multifamily construction, but remained 4.8% below August 2025.
U.S. 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 data cited in an analysis by the National Association of Home Builders. The increase followed declines during the second quarter, but spending was still 4.8% lower than a year earlier.
The monthly gain extended across all three residential categories in the report: improvement spending, which includes remodeling, and spending on single-family and multifamily construction. Improvement spending recorded the largest increase, rising 2.5% from July. Single-family and multifamily construction spending each increased 0.2%.
The year-over-year comparisons were weaker. Improvement spending was down 7.4% from August 2025, while single-family spending fell 3.5% and multifamily spending declined 0.6%. The figures describe spending, not the number of homes completed, construction starts or permits issued.
The Census Bureau figure is expressed at a seasonally adjusted annual rate, or SAAR. That convention presents the pace of spending in August as an annualized rate; it is not a statement that $882.3 billion was spent during that single month. The source material does not provide the underlying dollar amounts for each residential category.
A Monthly Rebound, Still Below Last Year
The August increase offers a sign of improvement after residential construction spending declined during the second quarter, but the annual decline shows the sector has not returned to its level a year earlier. For readers tracking housing activity, the two comparisons give different signals: spending improved from July, while remaining lower than in August 2025.
The categories also point to varied conditions within residential construction. Remodeling had the strongest monthly increase, yet its year-over-year decline was the steepest of the three. Single-family construction made a modest monthly gain but remained notably below its year-earlier level. Those differences matter to contractors, building-material suppliers and retailers whose demand can depend on whether homeowners are renovating or builders are developing new housing.
The figures do not establish why spending changed in August or whether the monthly gain will continue. They are a measure of the value of construction spending, and should not be treated on their own as proof of a broader shift in housing demand.
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Different Trends Across Housing Work
The report follows a period in which private residential construction spending declined during the second quarter of 2026. The August rise is therefore a month-to-month improvement against that recent backdrop, while the year-over-year declines show that spending remained below the comparable month in 2025.
In its analysis, the National Association of Home Builders said weak builder sentiment amid rising interest rates and costs was a factor in the declines in single-family and multifamily spending compared with a year earlier. That is the association’s explanation; the supplied report does not quantify how much each factor contributed to the changes.
The analysis also describes improvement spending as having been on an upward trend since 2023, supported in part by an aging housing stock and sustained renovation demand. It says the latest data are consistent with a soft patch for remodeling in 2026. August’s monthly increase does not erase the category’s 7.4% year-over-year decline.
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August’s Gain May Not Persist
The August report establishes that spending increased from July, but it does not show whether the rise marks a sustained recovery or a one-month movement. The source material provides no September figures, forecast or revisions to the August estimate.
It also does not give a detailed breakdown of the dollar contribution from each category, or establish the causes of the monthly change. The NAHB’s references to interest rates, costs, housing-stock age and renovation demand provide context, but the supplied data do not quantify their individual effects. The figures alone cannot determine how construction activity, prices or project volumes changed.
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Watch for September Spending Data
The next useful comparison will be the Census Bureau’s release of September 2026 construction spending data, including any revisions to prior months. That report can indicate whether the August monthly increase continued, reversed or remained concentrated in particular residential categories.
Until then, the confirmed picture is limited to August: total private residential spending rose from July but fell from a year earlier, and each reported residential category recorded a monthly increase. Further data will be needed to determine whether the second-quarter declines have given way to a lasting change in trend.
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Key Questions
How much did private residential construction spending rise in August?
It increased 1.1% from July, reaching a seasonally adjusted annual rate of $882.3 billion, according to U.S. Census Bureau data cited by the NAHB.
Was spending higher than in August 2025?
No. Total private residential construction spending was 4.8% lower than a year earlier, despite the monthly increase.
Which category had the largest monthly increase?
Improvement spending, which includes remodeling, rose 2.5% from July. Single-family and multifamily spending each increased 0.2%.
What does the $882.3 billion figure represent?
It is a seasonally adjusted annual rate based on August spending, not the amount spent during August alone.
Does the August increase mean construction spending is recovering?
The data confirm a month-to-month increase, but not a sustained recovery. Spending remained below its year-earlier level, and later monthly data are needed to show whether the gain continues.
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