Builders Reaffirm Confidence in Single-Family 55+ Housing Market

Confidence among builders in the single-family 55+ housing market is holding strong in the third quarter, according to the National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI).

The latest index had a reading of 59, up two points from the previous quarter. This is the tenth consecutive quarter that this index has a reading above 50. Two of the three index components of the 55+ single-family HMI posted an increase from the previous quarter: Present sales were up two points to 63 and traffic of prospective buyers rose five points to 47. But the component for sales for the next six months dropped four points to 65.  

Furthermore, the 55+ multifamily condo HMI rose one point to 48. The index component for present sales increased two points to 51, but the expected sales for the next six months fell three points to 51. The index component on traffic of prospective buyers remained unchanged at 38.

All the four indices tracking production and demand of 55+ multifamily rentals decreased in the third quarter.

“The 55+ housing market continues on a steady path toward recovery, much like the overall housing market,” said NAHB Chief Economist Robert Dietz. “Older home owners are able to take advantage of low mortgage rates and rising home prices, enabling them to sell their current homes and buy or rent a home in a 55+ community.”