Which Housing Market Has Builder Confidence at an All-Time High?

Business is booming with the Boomers. Third quarter results are in, and the 55+ housing market index is at the highest it has ever been since 2008. The National Association of Home Builders released the results that show a strong 55+ market, especially for the single-family component.

Builder and developer confidence in the 55+ housing market strengthened in the third quarter of 2019, as reflected by the single-family 55+ housing market index (55+ HMI) reading of 72, up one point from the previous quarter (Figure 1). This is the highest reading since the inception of the index in 2008.

NAHB produces two 55+HMIs, measuring sentiment in both the single-family and multifamily condominium markets. Each segment of the 55+ HMI is based on a survey that asks builders and developers if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic).

Among the components of the 55+ single-family HMI, present sales rose two points to 78, while expected sales for the next six months dropped one point to 77 and traffic of prospective buyers fell one point to 55.

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