Home builder confidence in the single-family 55-plus housing market took a leap forward in the second quarter of 2017, according to the National Association of Home Builders’ (NAHB) recently released 55+ Housing Market Index (HMI). The Index reading for the second quarter was 66, up a solid 11 points from the first quarter. An above-50 reading indicates more builders have a positive outlook than a negative one.
“Demand for 55-plus housing continues to grow, and this quarter’s Index is a reflection of that,” said Dennis Cunningham, chairman of NAHB’s 55+ Housing Industry Council, in a statement. “Consumers in this market want a home that addresses their specific needs, and 55-plus builders and developers are able to create homes and communities that cater to these needs.”
Home builders’ expectations regarding present and expected single-family home sales in the 55-plus market both rose in the second quarter, up to 70 and 80, in order, while expected homebuyer traffic rose 19 points to 53—an Index high.
“We are seeing strong demand in the 55-plus housing sector due to favorable market conditions, such as record highs in the stock market and rising home prices,” said Robert Dietz, chief economist at NAHB. “This quarter’s reading is in line with our forecast, as we expect to see continued gradual gains in 2017.”