Residential Construction Spending Edges Up in December 2025

Residential Construction Spending Edges Up in December 2025 Annie Dameworth March 3, 2026 Industry News, News Share Private residential construction spending was up 1.5% in December 2025, driven primarily by increased spending on home improvement and single-family construction, according to the National Association of Home Builders. Total spending still remained 1.3% lower than a year ago, reflecting continued housing affordability challenges. Single-family construction spending was up by 1.6% in December, according to the latest construction spending data from the U.S. Census Bureau, down 3.6% year over year. Meanwhile, multifamily construction spending increased 0.1% in December, the seventh consecutive month of modest gains. Compared to a year earlier, multifamily spending was 2.9% higher. Improvement spending rose 1.8% for the month but stayed flat relative to a year ago. The NAHB construction spending index illustrates how spending on single-family construction has slowed since early 2024 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023, with the index plateauing since the end of 2024. In contrast, improvement spending has been trending upward since the beginning of 2025. Spending on private nonresidential construction was down 1.8% over a year ago, driven by a $26 billion drop in manufacturing construction spending, followed by a $2 bill...