NAHB Data Show 55+ Housing Market Is Strong
New survey data measuring builder sentiment in the 55+ single-family housing market showed strong gains in the last quarter of 2017. The National Association of Home Builders' 55+ Housing Market Index (HMI) rose 12 points to a record high of 71, the 15th consecutive quarter that the index was over 50.
The HMI is based on sales data both current and anticipated, and prospective buyer traffic. Present sales went up 14 points to a record of 79, while expected sales over the next six months increased 10 points to 73. Prospective buyer traffic also increased, up seven points to 51. The NAHB Eye on Housing reports that these readings are indicative of a strong 55+ housing market, due in large part to rising homeowner wealth and demographics.
Supply and demand measures for the 55+ multifamily rental market are produced. The indices measuring current and expected future production increased three points to 62 and four points to 61, respectively, in the fourth quarter. Meanwhile, the indices measuring present and expected future demand fell four points to 71 and nine points to 67, respectively.