US homebuilders rise after Democrats sweep Congress
XLY•Shares of homebuilders rose 7% to 9% after Democrats won majorities in the Senate and House. UBS said Democratic control could increase the chances of lower building-material tariffs, which it estimates add about $7,500 to the cost of a new home.
1. Homebuilding shares advance
D.R. Horton, Lennar and PulteGroup gained between 7% and 8%, while KB Home and NVR rose about 9%. Home Depot was up 5%, and Lowe’s and Masco gained about 7%.
2. Policy could support demand
UBS said Democratic control could increase the chances of lower tariffs on building materials. It estimated tariffs add about $7,500 to the cost of a new home, and said expanded state and local tax deductions could boost disposable income and support housing demand, particularly in high-tax states. The More Homes on the Market Act and First Home Affordability Act could improve housing turnover and first-time buyer affordability, UBS said.
