According to recent data released from the U.S. Census Bureau, residential construction spending is up 0.3% from April and increased 1.8% year-over-year. This is largely attributed to an increase in remodeling spending, which rose 0.9% in May and 8.1% year-over-year.
Remodeling was the only sector to report a monthly increase, with both new residential construction and multifamily construction reporting a 0.1% dip.
“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,” said Catherine Koh, an economist at the National Association of Home Builders.
With the median age of an owner-occupied home at 42 and the recently passed 21st Century ROAD to Housing Act, the remodeling market is only expected to grow further.
