Residential Construction Spending Down

Atlanta, GA, Feb. 4, 2011 -- Residential construction spending declined 4.4% in December, according to Reed Construction Data, due entirely to a sharp decline in remodeling spending.

Single family spending increased 0.5%. Multi family spending fell 7.2%, Reed said.

Reed said the small December gain in the single family market is on track with other housing market reports but it's not clear why multi-family fell so drastically.

Chief economist Jim Haughey said the recovery will be modest compared to previous recoveries. He said millions of families are locked out of the market by various factors and there is no longer any incentive to buy a home to realize quick capital gains.