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Breaking Flooring News

Builder Confidence in 55+ Housing Market Continues to Improve

NAHB
November 11, 2013

Builder confidence in the 55+ housing market showed continued improvement in the third quarter of 2013 compared to the same period a year ago, according to the National Association of Home Builders (NAHB) latest 55+ Housing Market Index (HMI). All segments of the market--single-family homes, condominiums and multifamily rental--registered strong increases. The single-family index increased 14 points to a level of 50, which is the highest third-quarter number since the inception of the index in 2008 and the eighth consecutive quarter of year over year improvements.

"We have seen steady improvement in the 55+ housing sector as buyers and renters are attracted to new homes and communities that offer the lifestyle they desire" said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group. "Although the market is significantly stronger than it has been in recent years, we still have a ways to go to get back to full production." 

There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good.

All of the components of the 55+ single-family HMI showed considerable growth from a year ago: present sales climbed 16 points to 52, expected sales for the next six months rose 11 points to 53 and traffic of prospective buyers increased 10 points to 43. 

The 55+ multifamily condo HMI posted a gain of 14 points to 37, which is the highest third-quarter reading since the inception of the index. All 55+ multifamily condo HMI components increased compared to a year ago as present sales increased 15 points to 37, expected sales for the next six months climbed 11 points to 40 and traffic of prospective buyers rose 13 points to 35.

The 55+ multifamily rental indices also showed strong gains in the third quarter as present production increased 17 points to 48, expected future production rose 15 points to 50, current demand for existing units climbed 18 points to 60 and future demand increased 16 points to 60.

"Right now the positive year over year increase in confidence by builders for the 55+ market is tracking right along with other segments of the home building industry," said NAHB Chief Economist David Crowe. "And like other segments of the industry, the 55+ market is improving in part because consumers are more likely to be able to sell their current homes, which allows them to buy a new home or move into an apartment that suits their specific needs."

For the full 55+ HMI tables, please visit www.nahb.org/55hmi. 

KEYWORDS: flooring industry news housing market

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