Eye On Housing
Builder confidence in the 55+ housing market remained strong in the third quarter of 2015, according to results from NAHB’s 55+ Housing Market Index (55+ HMI) survey. Survey results show the 55+ HMI for single-family housing increasing to 60—up three points from the previous quarter and marking the sixth consecutive quarter the single-family 55+ HMI has been above the break-even point of 50 (which occurs whenever builders with positive sentiment about the market outnumber those whose view is negative).
The survey is also used to produce a 55+ HMI for multifamily condominiums. Like its single-family counterpart, the condo 55+ HMI is based on questions that ask builders if current sales, prospective buyer traffic and anticipated six-month sales are good, fair or poor (high, average or low for traffic). In the third quarter, the 55+ HMI for condos rose seven points and finally reached the key break-even point of 50—which is the highest it’s been since NAHB began conducting the survey in 2008.
In addition, the 55+ HMI survey tracks sentiment about production and demand in the market for 55+ multifamily rental housing. In the third quarter of 2015, the production index rose nine points to 55.
Meanwhile, the index measuring demand for existing 55+ rental housing—which has generally been the strongest segment of the 55+ market over the past several years—jumped 11 points to 70. That’s an all-time high for this particular index, and marks the first time any index produced from the 55+ HMI survey has hit 70.
For a more detailed version of the results, including the complete history of every series generated from the survey, visit NAHB’s 55+ HMI web page.
I would attribute the health of the + 55 market to the fact that they are less dependent upon the first-time homebuyer, twenty-five percent of whom are missing from the current market. The home they sell to move into a + 55 community is usually a large home they raised their family in and price well above a typical first-time buyers price range.
Yeah and I’m not sure that it’s a good sign in general. Is moving into a retirement community a desirable move? I would think most would rather continue living in their house instead of selling it to move into a community. So to say that the 55+ housing market is doing well is like saying cold medicine sales are high during cold season – yeah, because a lot of people are sick!
Or perhaps I’m wrong and a lot of people dream of moving into a retirement home. I know I don’t at least.