From the Census Bureau
Residential construction spending dropped 1%; all of the gains came from non-residential spending which increased 1.5%.
Residential spending is down 15% from year ago levels while non-residential spending is up 13.6%.
Non-residential construction has increased from 44% of the construction market in February 2006 to 51% in February 2007. That means so long as non-residential construction increases at more or less the decrease in residential spending, non-residential should be able to take-up the slack in residential spending.