New data from the U.S. Census Bureau indicated that private residential spending decreased by 0.03% in June. Remodeling and home improvement was the only sector to increase in June, but only by 0.01%.
In May, the remodeling sector contributed to the overall bump in construction spending. It was then revised to a 0.4% decline.
Compared to a year ago, private spending for remodeling is down 7.2%. Despite the decrease, overall sentiment for remodeling remains positive with continued demand.
“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,” said Catherine Koh, an economist at the National Association of Home Builders. “However, the latest revision indicates that a slowdown could be happening in 2026.”
