The 55+ home market has hit an all-time high, new figures suggest.
Builder confidence in the single-family 55+ housing market rose one point in the third quarter of 2019. It reached a record-high reading of 72. So says the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI). The 55+ home market has hit an all-time high, as this is the highest reading since the index began in 2008.
The 55+ HMI measures two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each segment measures builder sentiment based on a survey. It gauges current sales, prospective buyer traffic and anticipated six-month sales for that market. It asks participants if they are good, fair or poor (high, average or low for traffic).
Karen Schroeder, chair of NAHB’s 55+ Housing Industry Council, says, “The 55+ market has been supported by strong demand as ageing Baby Boomers continue to seek downsized homes, but with higher-end features and amenities. While conditions remain positive, headwinds such as labor shortages and rising construction costs are still dampening the market a bit.”
NAHB Chief Economist Robert Dietz, adds, “Demand for 55+ single-family housing remains strong, mirroring the gains we have seen in the overall market, which has been largely supported by low interest rates and healthy job growth. Sentiment about the 55+ multifamily market declined somewhat this quarter, but on balance remains positive. A modest decline was not surprising, given the post-Great recession record number of apartments currently under construction.”