While today’s report shows residential construction improving, economically it’s largely irrelevant. In 2005, single-family construction was single-handedly 3.4% of GDP and all new residential spending was 6.7%. Now, single-family activity is 1.3% of GDP and all residential activity is 3.3%. Conversely, since 2005 GDP has grown by 38%. Thus, in only 4 of the last 24 quarters has housing contributed more than one-third of a percentage point to GDP growth.