Builders feel there is growth for the 55+ housing market according to the latest measure of sentiment in the sector from the National Association of Home Builders.
The 55+ Housing Market Index (HMI) for the single-family sector was down 1 point to 71 in the second quarter with the component tracking present sales even at 76, expected sales for the next six months up 1 point to 78, and traffic of prospective buyers down 5 points to 56.
“Although the single-family HMI fell slightly, builder sentiment still remains strong for this segment of the market,” said Karen Schroeder, chair of NAHB's 55+ Housing Industry Council. “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.”
The 55+ multifamily condo HMI rose two points to 59, with present sales and expected sales for the next six months increasing 3 points to 61 and 65, respectively, while traffic of prospective buyers dropped two points to 50.
“Demand for 55+ housing remains solid, as demonstrated in the surge for 55+ rental demand,” said 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.”
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