The 55+ Housing Market strengthened in the third quarter of 2016, according to the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (55+HMI). The index increased two points to 59 from the previous quarter (Figure 1). This quarter marks the 10th consecutive quarter in which the index has been above the breakeven point of 50, which means that more builders view conditions as good than poor.
The NAHB produces two separate 55+ HMIs, one for the single-family market, and another tracking the condominium market. Each 55+ HMI is comprised of subcomponents that track market activity: current sales, prospective buyer traffic, and anticipated six-month sales.
Two of the three index subcomponents of the 55+ single-family HMI posted an increase from the previous quarter: present sales increased two points to 63 and traffic of prospective buyers rose five points to 47. Meanwhile, expected sales for the next six months dropped four points to 65.
The 55+ multifamily condo HMI rose one point to 48 (Figure 2). Among its subcomponents, present sales increased two points to 51, while expected sales for the next six months fell three points to 51 and traffic of prospective buyers remained even at 38.
The NAHB also tracks activity in the 55+ multifamily rental market. All four indices tracking production and demand in this market segment decreased in the third quarter. Present production fell three points to 48, expected future production decreased seven points to 49, current demand for existing units dropped nine points to 59 and future demand fell eight points to 59.
For the full 55+ HMI tables, please visit www.nahb.org/55hmi.