Fourth quarter survey shows a 4-point decline but index is still positive
Builders remain confident in the market for newly built single-family homes for those aged 55+ according to new stats.
The quarterly reading of the National Association of Home Builders' (NAHB) 55+ Housing Market Index (HMI) was 68 in the fourth quarter of 2019 compared to the previous quarter.
“Although down from a record-high previous three quarters, the 55+ HMI is still strong at 68 and is consistent with the gradual upward trend the index has shown since 2013,” said NAHB Chief Economist Robert Dietz. “The strong performance of the 55+ indices for the multifamily market, meanwhile, is in line with the surge in multifamily starts at the end of 2019.”
The components of the index were each lower in the fourth quarter: present sales fell five points to 73, expected sales for the next six months dropped two points to 75, and traffic of prospective buyers fell four points to 51.
Multifamily gains
Builder confidence in multifamily condos for the 55+ market rose in the fourth quarter of 2019.
The index gained 5 points to 58 with present sales up four points to 60, expected sales for the next six months up five points to 61, and traffic of prospective buyers up six points to 53.
“Overall, builder and developer sentiment in the 55+ housing market remains positive,” said Harry Miller III, chairman of NAHB's 55+ Housing Industry Council. “However, development costs and lack of labor are contributing to affordability concerns and preventing even more robust growth in the market.”
