Private residential construction spending dipped again in July, marking the fourth consecutive month of decline. According to analysis of the U.S. Census Bureau’s latest construction spending data, the seasonally adjusted annual rate (SAAR) of spending was $859.0 billion in July.
This is down 1.3% from the previous month’s estimate and down 7.3% year over year.
Looking at each market, single-family construction spending decreased 3.2%. The National Association of Home Builders, in its analysis, noted that this aligns with the builder sentiment posted in August.
Throughout 2026, builder confidence remained below the 50 index of neutral, as single-family spending reported a 6.5% year-over-year decline.
While multi-family and renovation reported modest month-to-month results, both declined compared to 2025 results.
“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,” said NAHB Forecasting and Analysis economist Catherine Koh.
