Private US Residential Construction Spending Increases in March

A closer look at the recently released US Census Bureau March construction spending report, with additional analysis from the National Association of Home Builders (NAHB), shows that private residential construction spending increased 1.7% in March after two consecutive monthly declines.

The increase was broad-based, with gains in single-family construction, multifamily construction, and home improvement spending. Total private residential construction spending was 3.6% higher than a year earlier.

Single-family construction spending rose 2.7% in March but was down 4.2% from March 2025.

Multifamily construction spending edged up 0.3%, the second consecutive monthly increase following two months of modest declines. Compared with a year earlier, multifamily spending was up 0.5%.

Residential improvements spending increased 0.9% and remained a bright spot on a year-over-year basis, rising 14.3%.

Spending on private nonresidential construction was down 2.1% year-over-year, driven by a $39 billion drop in manufacturing construction spending.