Residential construction jobs increased by just over 6,000 in April from the previous month, according to the Bureau of Labor Statistics, and residential specialty trade contracting jobs (plumbers, electricians, roofers, etc.) grew by over 7,000.
Those workers need more trucks, which has been a boon to companies like Ford and General Motors, which saw sales of pick-ups jump 24 percent and 23 percent respectively.
(Read More: Here’s Why Pick-up Truck Sales are Surging)
Retailers are also seeing the effects of housing growth. Homeowners spend an average $7,400 furnishing a newly built home, according to the National Association of Home Builders.
“Spending at furniture and appliance stores is finally coming back, which has meant more hires there since the start of the year,” added Swonk.
Home prices were up just over 10 percent nationally in February, according to CoreLogic, which continues to bring thousands of homeowners out from underwater on their mortgages. That has allowed more borrowers to refinance to lower monthly payments, which in turn gives them more spending money. It also gives them more confidence that they will be able to afford more in the coming year.
(Read More: Back in Business: Jobs Picture Brightens in April)
“Consumers’ views regarding the housing market have been increasingly more positive,” noted Fannie Mae’s chief economist Doug Duncan. “Our April National Housing Survey, to be released next Tuesday, is expected to show that the housing market is gradually approaching its sweet spot, as the share of consumers who believe that it is a good time to buy remains high while the share of those who think it is a good time to sell continues its upward trend witnessed over the past year.”
Article source: http://www.cnbc.com/id/100705522