U.S. private residential construction spending rises 0.8% in April, led by single-family and remodeling

Private residential construction spending rose 0.8% in April 2026, driven largely by gains in single-family construction and home-improvement activity. Single-family construction spending increased 1.4% in April, a monthly gain consistent with steady builder confidence reflected in the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Despite the monthly increase, single-family spending remained 2.9% below April 2025 levels.

Improvement spending (remodeling) provided a notable uplift in April, rising 0.4% for the month and standing 7.5% higher than a year earlier. Remodeling was a bright spot, showing an upward trend since the beginning of 2025, supported in part by an aging housing stock and sustained renovation demand.

Multifamily construction spending edged down 0.3% in April, the first monthly decrease after two months of modest gains; on a year-over-year basis multifamily spending was 1.1% higher.

The NAHB construction spending index illustrates that single-family spending has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building-material tariffs. Multifamily growth has likewise slowed after a July 2023 peak, with the index largely plateauing since late 2024.

Outside housing, private nonresidential construction spending was weaker on an annual basis, down 2.1% year-on-year, a decline driven by a $41.8 billion drop in manufacturing construction spending.