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Private Residential Construction Spending Continues to Weaken – Eye On Housing

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Private residential construction spending fell further in July, marking its fourth consecutive monthly decline. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $859.0 billion in July, down 1.3% from the revised June estimate and down 7.3% from a year earlier.

The July decrease was driven entirely by the single-family construction, the only residential category to post a monthly decrease. Single-family construction spending fell 3.2%, consistent with the continued weakness in builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI). On a yearly basis, single-family spending was down 6.5%.

Multifamily construction spending edged up by 0.2% from June but remained 0.9% below the previous year. Spending on improvement (remodeling) also saw a modest increase of 0.3% over the month but declined 10.2% over the year. The remodeling estimates, which had significant revisions in the June report, underwent further revisions in July. May’s monthly change was revised from a 0.4% decline to a 1.1% decline, while June’s initially reported a 0.1% increase was revised to a 0.8% decrease.

The NAHB construction spending index is shown in the graph below. 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. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024.  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 revision indicates that a slowdown could be happening in 2026.

Private nonresidential construction moved in the opposite direction, recording its fourth consecutive monthly increase. July’s spending rose 0.4% to a SAAR of $755.2 billion, although it remained 3.3% below the previous year. Data center construction, a subcategory within office construction, remained strong with spending increasing 6.2% month-over-month and 57.2% year-over-year. The share of data centers as a percentage of spending on office construction has now surpassed 60% in July 2026.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Number of Open Construction Sector Positions Rising – Eye On Housing

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The number of open positions in the construction sector increased in July per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down from three years ago due to declines in construction activity, particularly in housing. Nonetheless, strength in construction for subsectors like data center construction (up 46% year-over-year) is creating demand for construction workers. Further, increasing immigration enforcement actions is having an effect on worker availability, which is also contributing to the number of open positions.

The number of open jobs for the overall economy increased slightly in July, rising to 7.27 million. The July reading was higher than a year ago (7.09 million). The recent increase in job openings for the overall economy indicates that the labor market remained resilient during the summer, despite concerns over headline risk and AI.

The number of open construction sector jobs increased for the month, rising slightly from 298,000 in June to 326,000 in July. This total is also higher than the total from a year ago (305,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened.

While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). The July data suggest a breakout from the range for the last two years is possible given the crosswinds affecting the construction labor market.

The construction job openings rate increased to 3.8% in July, up from the 3.6% rate estimated a year ago.

Construction hiring picked up in July, with the hires rate rising from 3.8% to 4.4%.

The layoff rate in construction was flat at 1.9% in July. The quits rate increased to 2.3% in July.



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Single-Family Construction Contracts Broadly While Multifamily Expands – Eye On Housing

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Home building trends diverged across geographies in the second quarter of 2026. According to the Home Building Geography Index (HBGI), single-family construction declined in nearly all geographic categories, although the contraction eased in most markets from the first quarter. Multifamily construction expanded across six of the seven categories, with activity increasingly concentrated in large metro core and suburban counties.

Single-Family

Single-family construction declined in six of the seven geographic categories in the second quarter. However, the downturn in single-family construction in the second quarter eased as these geographies contracted at a slower pace from the previous quarter.

Large metro core counties recorded the steepest decline, falling 13.9% and marking the fifth consecutive quarter of decline. This was an improvement from the 15.8% decline in the first quarter. Outlying counties in small metro areas were the only market to return to growth, increasing a modest 0.9% following four consecutive quarterly declines.

The geographic composition of single-family construction continued to shift toward smaller and less densely populated markets. Large metro core counties experienced the largest market share decline, falling 1.3 percentage points from a year earlier to reach another new low point at 14.6%. By contrast, small metro outlying counties posted the largest gain, increasing 0.8 percentage point to 10.9%.

Small metro core counties remained the largest single-family market, accounting for 29.4% of construction, followed by large metro suburban counties at 24.0%.

Multifamily

Multifamily construction expanded in all markets except large metro outlying counties. Large metro core counties increased 11.6%, recording three-quarters of consecutive growth. Compared to the previous quarter, the pace of increase has slowed but the market still recorded the strongest growth among all geographies.

Large metro suburban counties also followed a similar pattern, posting a 7.9% increase, although growth has slowed from the prior quarter. In contrast, large metro outlying counties declined 15.9% and were the only market that contracted for the multifamily sector.

Non-metro/micro counties posted the clearest acceleration, with growth rising to 10.3%, although these areas accounted for only 1.2% of multifamily construction.

Multifamily market share continued to shift toward large metropolitan areas. Large metro core counties gained 1.6 percentage points from a year earlier to reach 35.4%, while large metro suburban counties gained 0.5 percentage points to reach 27.3%. Together, these markets accounted for 62.7% of multifamily construction.

The second quarter of 2026 HBGI data along with an interactive HBGI map can be found at https://nahb.org/hbgi.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Second Quarter 2026 Multifamily Construction Data – Eye On Housing

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According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the second quarter of 2026. For the quarter, 117,000 multifamily residences started construction. Of this total, 109,000 were built-for-rent. This built-for-rent total was 5% higher than in the second quarter of 2025. Prior NAHB analysis suggests this expansion primarily occurred in smaller metro areas and lower density markets, given ongoing weakness in urban core areas.

The market share of rental units of multifamily construction starts was 93% for the second quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the second quarter, there were 8,000 multifamily condo unit construction starts, up slightly from a year ago (7,000) given ongoing housing affordability challenges.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the second quarter 2026 data, the average square footage of multifamily construction starts increased slightly to 1,053 square feet. The median, or typical unit, increased to 1,008 square feet. These measures are consistent with the elevated share of multifamily built-for-rent construction.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Short-Term Townhouse Construction Weakness – Eye On Housing

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Second quarter 2026 data reveal softer conditions for townhouse construction as housing affordability challenges affect homebuyer demand, particularly in larger metropolitan markets.

According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the second quarter of 2026, single-family attached starts totaled 42,000, down 9% from the second quarter of 2025.

Over the last four quarters, townhouse construction starts totaled 159,000 homes, down 12% from the prior four quarter period (180,000). Townhouses made up 17% of all of single-family housing starts for the second quarter of the year.

Using a one-year moving average, the market share fell back to 17.4%, after reaching an all time high in the third quarter of 2025 (18.7%).

Prior to the current cycle, the peak market share of the last two decades for townhouse construction was set during the first quarter of 2008, when the percentage reached 14.6% on a one-year moving average basis. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.

The long-run prospects for townhouse construction remain positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Construction Job Openings Rising – Eye On Housing

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The number of open positions in the construction sector increased in June, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have increased demand for construction labor, although they have not fully offset the weakness present in the residential construction sector. Nonetheless, strength in construction for subsectors like data center construction (up 46% year-over-year) is creating demand for construction workers.

The number of open jobs for the overall economy was roughly flat in June, remaining near 7.40 million. The June reading was somewhat higher than a year ago (7.2 million). The recent increase in job openings for the overall economy indicates that the labor market remains on solid footing, despite concerns over headline risk and AI.

The number of open construction sector jobs increased for the month, rising slightly from 291,000 in May to 305,000 in June. This total is higher than the total from a year ago (224,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a lower range in the job openings series since 2024.

The construction job openings rate increased to 3.5% in June, up from the 2.6% rate estimated a year ago.

The layoff rate in construction was flat at 2% in June. The quits rate increased to 1.8% in June.



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Residential Construction Spending Slips as Remodeling Activity Weakens – Eye On Housing

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Private residential construction spending declined 0.3% in June, while substantial downward revisions to improvement (remodeling) spending significantly altered the sector’s recent trajectory. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $877.1 billion in June, down 0.3% from the revised May estimate and 4.7% lower than a year earlier. May’s monthly change was also revised downward, from an initially reported 0.3% increase to a 0.3% decline.

Although remodeling was the only residential category to increase in June, the gain was modest at 0.1%. When compared to a year ago, spending has declined 7.2%. The latest April and May estimates have also been revised significantly lower by the Census. April’s month-over-month change was revised from a 1.6% increase to a 10.1% decline, while May’s change was revised from a 0.9% increase to a 0.4% decline. On a year-over-year basis, April was revised from a 10.0% increase to a 2.6% decline, and May was revised from an 8.1% increase to a 5.5% decline.

Revisions to single-family and multifamily construction spending were minor and did not alter the direction of their monthly movements. In June 2026, single-family construction spending decreased 0.6% in June, consistent with the weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI); on a yearly basis, single-family spending is down 3.3%. Multifamily construction spending also decreased 0.7% from May, and 1.5% from a year ago.

The NAHB construction spending index is shown in the graph below. 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. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024. 

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 revision indicates that a slowdown could be happening in 2026.

For private nonresidential construction, spending increased 0.1% in June to a SAAR of $745.3 billion but remained 4.7% below its year-earlier level. Meanwhile, spending on data centers, a subcategory within office construction remained strong, increasing 7.0% month-over-month and 45.8% year-over-year. The share of data centers as a percentage of spending on office construction has grown from 45.8% a year ago to 59.0% in June 2026.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Residential Construction Employment Concentrated in Rural and Smaller-Market Counties – Eye

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Residential construction employment continued to soften in recent months, reflecting elevated interest rates, ongoing affordability challenges, and slower home building activity. Over the last 12 months, residential construction employment has shed a net of 48,800 jobs, marking the fifteenth consecutive annual decline and the longest stretch of annual losses since the Great Recession. Despite these nationwide job losses, residential construction remains a significant source of local employment in many markets.

NAHB analysis of county-level data shows that the industry’s employment footprint is particularly large in rural and smaller-market counties, where home building accounts for a greater share of total employment than it does nationally.

The Concentration of Residential Construction Employment

To better understand the local concentration of residential construction employment, this analysis uses location quotients (LQ), published by the U.S. Bureau of Labor Statistics (BLS). An LQ compares an industry’s share of local employment with its share nationally. In the context of residential construction, an LQ greater than 1.0 indicates that home building accounts for a larger share of the local economy than it does nationally.

Using December 2025 BLS data, county-level estimates reveal substantial geographic variation in residential construction employment across the United States.

Counties with an LQ below 1.0 had a smaller residential construction employment share than the national share. These counties were concentrated in the South and Great Plains. Louisiana had the largest share of counties below the national share, at 97.1%, followed by Mississippi (92.3%), Oklahoma (87.1%), Alabama (86.8%), and Kansas (82.6%).

Counties with an LQ above 1.0, by contrast, were more concentrated in the West. Hawaii and Delaware each had all their counties above the national share, followed by Oregon (92.6%), Washington (91.3%), Utah (89.5%), Alaska and Vermont (both at 87.5%), Idaho (77.8%), Wyoming (76.9%), and California (75.6%). Overall, nearly three-quarters (74.6%) of counties in Western states had LQ values above 1.0. Average LQ values reached as high as 2.94 in Wyoming and 2.88 in Utah, underscoring the outsized role residential construction plays in many western economies.

Counties with an LQ equal to 1.0 were rare, representing only six counties, or approximately 0.4% of the sample. These counties include Fresno County, California; Lawrence County, Ohio; Isabella County, Michigan; Brown County, South Dakota; and Milam and Polk Counties, Texas. In these counties, local residential construction employment concentration precisely mirrored the national share.

Residential Construction Concentration by HBGI Category

The geographic patterns become even clearer when counties are grouped by NAHB’s Home Building Geography Index (HBGI). Residential construction generally plays a larger role in rural and suburban markets, while large metro core counties show relatively lower employment concentration because their economies are more diversified and less dependent on home building activity.

Among the seven HBGI categories, non-metro/micro counties recorded the highest concentration of residential construction employment, with an average LQ of 1.48. Of the 286 counties in this category, 139 counties, or 48.6%, had residential construction employment shares above the national share. These higher-concentration counties showed an exceptionally strong average LQ of 2.40.

Suburban counties also posted relatively high concentrations of residential construction employment. Large metro outlying counties ranked first in the share of counties exceeding the national share, with 57.8% of counties posting an LQ above 1.0 and an overall average LQ of 1.30. Large metro suburban counties followed closely, with an average LQ of 1.19 and 56.8% of counties above the national share.

By comparison, large metro core counties recorded the lowest residential construction employment concentration, with an average LQ of just 0.81. Only 33.9% of counties in this category exceeded the national share, and the highest observed LQ was 2.01, with no counties reaching an LQ of 4.0. Small metro core counties showed a similarly modest concentration, with an average LQ of 0.98 and only 36.0% of counties above the national share.

Overall, these findings highlight the uneven geography of residential construction employment. While large metropolitan cores have broader and more diversified labor markets, rural communities and outlying suburban counties remain more reliant on home building as a source of local jobs.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Residential Construction Spending Increases in May Due to Remodeling – Eye On Housing

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Private residential construction spending rose modestly in May 2026, marking the third consecutive month of gains, albeit at a slower pace. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $930.2 billion in May, up 0.3% from April and up 1.8% from a year ago.

The increased spending was driven by improvement (remodeling) spending, which was the only residential sector that posted a monthly increase. Remodeling spending rose 0.9% over the month and 8.1% over the year. Single-family construction spending decreased 0.1% in May, consistent with the weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI); on a yearly basis, single-family spending is down 4.0%. Multifamily construction spending also edged down 0.1% from April, though it is up 3.3% from a year ago.

The NAHB construction spending index is shown in the graph below. 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. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation. 

Spending on private nonresidential construction was down 0.3% in May and down 6.6% from a year ago. Meanwhile, spending on data centers is still increasing, albeit at a slower pace, up 0.6% month-over-month and 23% year-over-year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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Construction Job Openings Increase – Eye On Housing

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The number of open positions in the construction sector increased in May, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have increased demand for construction labor, although they have not fully offset the weakness present in the residential construction sector.

The number of open jobs for the overall economy was flat in May, remaining near 7.59 million. The May reading was also measurably higher compared to a year ago (7.31 million). The recent increase in job openings for the overall economy indicates that the labor market remains on solid footing, despite concerns over headline risk and AI.

The number of open construction sector jobs increased for the month, rising slightly from 266,000 in April to 298,000 in May. This total was higher than the total from a year ago (222,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a lower range in the job openings series since 2024.

The construction job openings rate increased to 3.5% in May, up from the 2.6% rate estimated a year ago.

The layoff rate in construction increased to 2.1% in May. The quits rate fell back 1.3% for the month.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

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