Builder Confidence in Senior Housing Declines

Washington, DC, Nov. 14, 2011 -- Builder confidence in the 55+ housing market for single-family homes fell three points to 12 compared to the same period a year ago, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index.

“The current state of the economy continues to affect buyers in the 55+ housing market,” said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev.

“The market remains weak given the many uncertainties people face in this economy. While potential buyers exist, they are hesitant to commit to buying a new home as they are concerned about selling their existing home at a fair price, due to low appraisals, an abundance of foreclosures and tighter mortgage lending criteria.”

While staying even compared to a year earlier, the 55+ multifamily condo HMI still remains weak with an index level of 10. Present sales dropped one point, to 9, while expected sales dropped four points, to 10. Traffic of prospective buyers rose two points, to 11.

Alternatively, 55+ multifamily rentals remain the strongest segment of the 55+ housing market, with the index measuring present demand rising 12 points to 40, and the one measuring future demand up 10 points to 42.