The National Association of Home Builders’ (NAHB) single-family 55+ housing market index (55+ HMI) posted a reading of 66 in the second quarter of 2017, up 11 points from the previous quarter. This is the 13th consecutive quarter with a reading above 50, which means that more builders view conditions as good than poor (Figure 1).
There are two separate 55+ HMIs: one measuring builder sentiment in the single-family market and another for the multifamily condominium market. Each 55+ HMI is based on a survey that asks builders 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).
All three components of the 55+ single-family HMI increased in the second quarter. Expected sales for the next six months increased 12 points to 80, while present sales rose eight points to 70 and traffic of prospective buyers jumped 19 points to 53.
The 55+ multifamily condo HMI rose seven points to 53 in the second quarter (Figure 2). All three of the condo components posted gains: present sales increased six points to 56, while expected sales for the next six months and traffic of prospective buyers both rose eight points to 55 and 45, respectively.
In addition to the for-sale market, NAHB also tracks activity in the 55+ multifamily rental market. All four indices tracking production and demand of 55+ rentals increased in the second quarter: present production rose three points to 53, expected future production climbed eight points to 52, current demand for existing units increased two points to 66 and expected future demand rose five points to 67.
This quarter’s 55+ HMI is consistent with the NAHB forecast of continued gradual gains in the housing market in 2017. For the full 55+ HMI tables, please visit www.nahb.org/55hmi.