After two months of growth, private residential building spending fell 0.8% in January 2026.
Lower spending in single-family, multifamily development, and home improvement contributed to this reduction.
Despite the monthly drop, total residential construction investment is still 2.3% higher than a year ago.
According to the most recent U.S. Census construction spending data, single-family construction spending fell 0.2% in January, reflecting lower builder confidence as shown in the NAHB/Wells Fargo Housing Market Index.
Single-family construction spending fell by 5.8% compared to the previous year.
Meanwhile, multifamily construction investment declined slightly in January, falling 0.7%. This is the second straight monthly fall after six months of modest improvements.
Multifamily spending increased by 0.4% from the previous year.
Improvement spending (remodeling) down 1.4% in the month, but rose 12.5% year on year.
The graph above depicts the NAHB construction spending index.
The indicator shows how expenditure on single-family homes has declined since early 2024, reflecting the effects of rising interest rates and persistent concern about building material tariffs.
After peaking in July 2023, multifamily construction spending growth has declined, with the index basically plateauing since late 2024.
Improvement spending, on the other hand, has been rising since the beginning of 2025, owing in part to an aging home stock and ongoing need for renovations.
Private nonresidential building spending fell 3% compared to the previous year.
The annual decline in private nonresidential spending was primarily driven by a $35 billion drop in manufacturing construction spending, followed by a $0.8 billion drop in commercial construction spending.
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