Hardware Retailing The Industry's Source for Insights and Information
Private residential construction spending rose in August 2026 following months of decline during the second quarter of the year, according to an analysis from the National Association of Home Builders. Private residential construction spending was reported 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, according to the U.S. Census Bureau.
All residential sectors saw an increase in the month, 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, largely due to weak builder sentiment amid rising interest rates and cost.
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.
