Builder assurance in the single-family 55+ home market remained strong in the next quarter with a reading of 71, edging down one point in the last quarter because of softness in traffic of potential buyers, in accordance with this National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI) released now.
The 55+ HMI steps two sections of this 55+ home market: single-family houses and multifamily condos. Each section of this 55+ HMI steps builder opinion based on a questionnaire which asks if present sales, potential buyer traffic and expected six-month sales for this marketplace are equally good, fair or bad (high, moderate or low to traffic).
“Although the single-family HMI fell slightly, builder sentiment still remains strong for this segment of the market,” stated Karen Schroeder, chair of NAHB’s 55+ Housing Industry Council and vice president Mayberry Homes at East Lansing, Mich. “In fact, the reading of 71 is just one point off from the all-time high of 72 from the previous quarter. We expect the 55+ housing market to continue on a positive path moving forward.”
For the 3 indicator components of this 55+ single-family HMI, current sales remained at 76, anticipated sales for another six months improved one point to 78 and traffic of prospective buyers dropped five points to 56.
The 55+ multifamily condo HMI increased 2 points to 59. Two of three indicator components posted gains from the preceding quarter: Present sales and anticipated sales for another six months improved three points to 61 and 65, respectively, whilst traffic of potential buyers fell two points into 50.
All four components of this 55+ multifamily rental market went up against the first quarter: Present manufacturing and future anticipated production both climbed six factors to 64, while current demand jumped 12 factors into 73 and potential anticipated demand increased 10 factors into 73.
“Demand for 55+ housing remains solid, as demonstrated in the surge for 55+ rental demand,” stated NAHB Chief Economist Robert Dietz. “Builder sentiment for the for-sale 55+ housing market also remains in positive territory, supported by low inventory of existing homes. However, it is being constrained by development costs and their impact on affordability.”
For the complete 55+ HMI tables, please see nahb.org/55hmi.