Builders’ confidence in the single-family 55+ housing market bounced back by 27 points to 65 in the second quarter, according to the latest National Association of Home Builders 55+ Housing Market Index.
The 55+ HMI measures builder sentiment for two segments of the 55+ market, single-family homes and multifamily condominiums, based on three index components: present sales, anticipated six-month sales, and prospective buyer traffic. In Q2 2020, single-family current sales sentiment rose by 24 points to 72, while expected sales rose 36 points to 70 and traffic of prospective buyers rose 28 points to 46.
“Low supply of existing homes and low interest rates are key factors in helping the 55+ housing market bounce back to where it was at the beginning of the year,” said Harry Miller III, chairman of NAHB’s 55+ Housing Industry Council and president of Regal Builders LLC in Dover, Del.
“Like the broader housing market, we are seeing the 55+ housing market return to pre-pandemic levels,” said NAHB chief economist Robert Dietz. “However, challenges such as rising lumber costs and availability of skilled labor will limit a more robust recovery.”
