Builder confidence in the single-family 55+ housing market jumped 27 points to 65 in the second quarter, according to the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (55+HMI). An index reading over 50 indicates more builders view market conditions as good than poor (Figure 1).
The 55+ HMI measures two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each segment of the 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).
All three index subcomponents of the 55+ single-family HMI posted gains in the second quarter: present sales increased 24 points to 72, expected sales for the next six months surged 36 points to 70 and traffic of prospective buyers rose 28 points to 46.
The 55+ multifamily condo HMI reading also jumped in the second quarter, rising 18 points to 47 (Figure 2). All three components posted increases in the second quarter: present sales rose 14 points to 50, expected sales for the next six months increased 25 points to 52 and traffic of prospective buyers rose 25 points to 39.
NAHB also produces indices measuring supply and demand in the 55+ multifamily rental markets. All four indices increased in the second quarter: present production increased nine points to 56, expected future production rose 12 points to 54, present demand for existing units increased 11 points to 61 and future expected demand posted a 15-point gain to 64.
Similar to the overall housing market, activity in the 55+ housing market is starting to return to pre-pandemic levels. The industry, however, still faces challenges in the areas of lumber costs and skilled labor availability, which may impact the recovery going forward.
For the full 55+ HMI tables, please visit nahb.org/55hmi.