Builders Less Confident in 55+ Housing

Builders Less Confident in 55+ Housing

January 31, 2020
Builder confidence in the market for newly-built single-family homes rose three points to 71 in October
Builder confidence in the single-family 55+ housing market fell by four points to 68 in the fourth quarter, according to the National Association of Home Builders (NAHB) 55+ Housing Market Index (HMI).
The three index components of the 55+ single-family HMI all recorded declines: the component for present sales fell five points to 73, expected sales for the next six months dropped two points to 75 and traffic of prospective buyers slipped by four points to 51. In contrast the HMI for 55+ multifamily condo and multifamily rental markets both recorded increases.
“Overall, builder and developer sentiment in the 55+ housing market remains positive,” said Harry Miller III, chairman of NAHB’s 55+ Housing Industry Council and president of Regal Builders LLC in Dover, Del. “However, development costs and lack of labor are contributing to affordability concerns and preventing even more robust growth in the market.”