Builder Confidence in 55+ Housing Market Ends 2015 on Positive Note
Washington, DC, February 5, 2016— Builder confidence in the single-family 55+ housing market
remained strong in the fourth quarter of 2015 with a reading of 61, up one point
from the previous quarter, according to the National Association of Home
Builders' (NAHB) 55+ Housing Market Index (HMI). This is the
seventh consecutive quarter with a reading above 50.
There are separate 55+ HMIs for
two segments of the 55+ housing market: single-family homes and multifamily
condominiums. Each 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). An index number above 50 indicates that more builders view conditions
as good than poor.
One of the three index components
of the 55+ single-family HMI posted an increase from the previous quarter:
traffic of prospective buyers increased six points to 52. Present sales held
steady at 65 while expected sales for the next six months decreased four points
The 55+ multifamily condo HMI
dropped eight points to 42, falling back to a range typical of the past year
and a half. All three components decreased as well: present sales fell 10
points to 44, expected sales for the next six months fell 10 points to 46 and
traffic of prospective buyers edged down three points to 37.
Three of the four indices
tracking production and demand of 55+ multifamily rentals posted gains in the
fourth quarter. Present production and expected future production both rose one
point to 56 and 61, respectively, and future demand increased three points to
71, while current demand for existing units fell four points to 66.