CONSTRUCTION & COMMERCIAL REAL ESTATE · SEPTEMBER 6, 2026
Private Nonresidential Construction Edges Higher as Total Spending Falls
The Census Bureau's September 1 report estimates July construction spending at a $2.158 trillion annual rate, down 0.5% from June and 3.8% from a year earlier, while private nonresidential spending increased 0.4% for the month.
What the September 1 release reports
The U.S. Census Bureau estimated July 2026 construction spending at a seasonally adjusted annual rate of $2.1576 trillion. That was 0.5% below the revised June rate and 3.8% below July 2025. Spending during the first seven months of 2026 totaled $1.2446 trillion, 3.5% below the comparable 2025 period. The monthly total change carries a reported margin of error, so it should be read as an estimate rather than a precise project-level signal.
- 01Total spending declined
- 02Residential spending moved lower
- 03Nonresidential activity edged higher
Residential and nonresidential paths differed
Private construction spending was estimated at a $1.6142 trillion annual rate, down 0.5% from June. Within that category, private residential construction fell 1.3% to $859.0 billion, while private nonresidential construction rose 0.4% to $755.2 billion. Public construction was estimated at $543.4 billion, down 0.2%. These national figures measure value put in place; they do not reveal an individual project's costs, contractor availability, completion risk, or lender appetite.
Practical borrower takeaway
Use the release as external context, then underwrite the actual project. Reconcile hard and soft costs to current bids, separate committed contracts from estimates, document escalation assumptions, preserve a realistic contingency, and align the draw schedule with contractor-payment obligations and lender inspection timing. Acquisition and refinance borrowers should also distinguish completed improvements from future capital needs when presenting value, leverage, and stabilized cash-flow assumptions.
Construction borrowers should replace broad market assumptions with a current, line-item budget, committed contracts, realistic draw timing, and contingency sized to the project's actual scope and local cost risks.
Discuss a financing need →This independent summary is based on the cited source and is provided for general educational purposes only. Terms and program requirements may change.