In what may be seen as a threat to independent living or continuing care retirement communities, builder confidence in the single-family active adult housing market jumped 18 points in the third quarter, hitting an all-time high, according to a blog post by the National Association of Home Builders.
The 55+ Housing Market Index, or HMI, measures two segments of the active adult housing market: single-family homes and multifamily condominiums. Surveys of builder sentiment taken every quarter examine current sales, prospective buyer traffic and anticipated six-month sales.
All three index components of the 55+ single-family HMI posted all-time highs in the third quarter: present sales increased 16 points to 88, expected sales for the next six months rose 20 points to 90 and traffic of prospective buyers jumped 23 points to 69. Within the 55+ multifamily condo segment, all three index components also posted increases: present sales rose 20 points to 70, expected sales for the next six months increased 15 points to 67 and traffic of prospective buyers jumped 24 points to 63.
“Low interest rates and the importance of home are helping to fuel demand in the 55+ housing market,” the blog reported. “On the supply-side, builders are experiencing shortages of key construction materials, which continues to negatively impact affordability. Recent declines in the price of lumber has offered some relief, however.”