Residential construction falls 4%, driving overall U.S. spending to 2.2%

Posted on September 3, 2025   |  

U.S. construction spending totaled $1,232.7 billion in the first seven months of 2025, down 2.2% from $1,259.9 billion in the same period of 2024.

Residential construction dropped 4.0% to $524.7 billion, while nonresidential construction eased 0.8% to $707.9 billion.

Private construction spending fell 3.8% to $946.5 billion, with private residential down 4.1% to $517.9 billion.

Within private residential, new multifamily housing saw the steepest decline, falling 12.5% to $66.6 billion, while single-family construction slipped 2.4% to $243.0 billion.

Private nonresidential construction fell 3.5% to $428.6 billion, led by a 13.7% drop in commercial and a 6.3% decline in educational building.

Public construction rose 3.8% to $286.2 billion, supported by strong gains in public commercial (+37.9%), health care (+14.0%), and amusement/recreation (+11.0%).

In July 2025 alone, construction spending ran at a seasonally adjusted annual rate of $2,139.1 billion, down 0.1% from June and 2.8% lower than July 2024.