Single-Family Builders Less Confident in Boomer Market

The latest index data from the National Association of Home Builders reveal that builders are less confident in the market for those aged 55 years and up, as Boomers increasingly prefer renting.

Chuck Ellison, NAHB 55+ Housing Industry Council chairman and Miller & Smith vice president, says production is being affected by a variety of factors, saying, "Many places around the country [are] facing labor and lot shortages, along with increased building material costs." On the other hand, builder sentiment data for the 55+ multifamily market segment had its highest reading since the index was created in 2008, up 10 points to 64, HousingWire reports.

The HMI is a survey of home builders which measures the housing market weighted on seasonally ingested high, average or low traffic. The monthly survey gathers builders' insight on current single-family home sales and expectations for the next six months rated as fair, good or poor. Compared to the previous quarter, sales of single-family homes to those over 55 years fell an astonishing nine points to 70. Expected sales for the next six months gradually rose seven points to 80, while traffic for perspective buyers was consistent at 51 points.

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