Homebuilders are feeling good about the upcoming Trump presidency.
A monthly reading of homebuilder confidence went up by seven points in December, its first reading since the election, CNBC reported.
The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) rose to 70, the highest level since July 2005. An index of above 50 signals positive sentiment.
The index has not jumped by this large a margin in 20 years.
“This notable rise in builder sentiment is largely attributable to a postelection bounce, as builders are hopeful that President-elect Trump will follow through on his pledge to cut burdensome regulations that are harming small businesses and housing affordability,” said NAHB Chairman Ed Brady, a homebuilder and developer from Bloomington, Illinois.
“This is particularly important, given that a recent NAHB study shows that regulatory costs for homebuilding have increased 29 percent in the past five years,” added Brady, whose name has come up as a possible head of the Federal Housing Administration in the Trump administration.
Of the index’s three components, current sales conditions increased seven points to 76, sales expectations in the next six months rose nine points to 78, and buyer traffic rose six points to 53 — the first time buyer traffic has been positive since 2005.
“Though this significant increase in builder confidence could be considered an outlier, the fact remains that the economic fundamentals continue to look good for housing,” said NAHB Chief Economist Robert Dietz.
Trump’s election to the presidency has given other industries confidence as well, including the confidence to hire more employees in the U.S.
U.S. Steel, for example, gained confidence after Trump’s election and hopes to rehire 10,000 employees who had been laid off.
Carrier Air Conditioning Company also promised to keep 1,000 jobs in the U.S. after making a deal with the president-elect.
IBM has also said it would create 25,000 jobs right before Trump was set to meet with tech industry leaders Wednesday.