Private residential construction spending rose 1.1% to a seasonally adjusted annual rate of $882.3 billion in August, with remodeling posting the strongest increase of any residential sector, according to the National Association of Home Builders’ analysis of U.S. Census Bureau data. Remodeling spending climbed 2.5% from July but remained 7.4% below its level a year earlier.
Single-family and multifamily spending each edged up 0.2% for the month and were down 3.5% and 0.6% year over year, respectively. NAHB linked the single-family weakness to low builder sentiment amid rising interest rates and costs.
Remodeling spending has generally trended upward since 2023, supported in part by an aging housing stock and steady renovation demand, NAHB noted. However, the latest results point to a potentially soft patch for remodeling in 2026.
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