Private construction spending, meanwhile, dropped by 0.7% in November after falling by 0.9% in October.

But outside of home construction, private construction rose by 1.7% in November. Housing has been the key drag on private construction. Private nonresidential construction spending has risen for 14 consecutive months.

"The strength in [nonresidential] is helping cushion the blow of the housing disaster," wrote Ian Shepherdson of High Frequency Economics. "Just don't bet on this continuing much longer."

Shepherdson noted that most subsectors were up for the month and reported double-digit year-over-year gains. In particular, he noted that lodging is up 67.5% year over year. But, he said, "this is hard to square with the slowing in consumers' spending and it will surely end in tears."

Meanwhile, spending on federal construction projects climbed by 2.2% in November, slowing down from a month earlier. In October, outlays on federal construction projects rose by 4.4%, a reversal on the heels of having fallen by 6.7% in September.