Builders Keep Confidence in 55+ Housing Market

Builders and developers have yet to lose their faith in the viability of the single-family 55+ housing market, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) report. For the second quarter of this year, the HMI recorded a reading of 57, up one point from the previous quarter. This marks the ninth consecutive quarter with an HMI reading above 50.

Within the 55+ single-family HMI, the component for the traffic of prospective buyers increased four points to 42, while the present sales component remained at 61 and the expected sales for the next six months component fell two points to 69.

Separately, the 55+ multifamily condo HMI dropped one point in the second quarter to 47. Within this index, the component for expected sales for the next six months rose three points to 54 as the present sales component remained at 49 and the traffic of prospective buyers component fell seven points to 38.

“Builders and developers for the 55+ housing sector continue to report steady demand,” said Jim Chapman, chairman of NAHB’s 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta. “However, there are many places around the country facing labor and lot shortages, which are hindering production.”