NAHB: Builders see surge in senior housing market

Builder confidence in the market for single-family homes for people age 55 and older continues to rise, according to the National Association of Homebuilders’ (NAHB), latest 55+ Housing Market Index (HMI).

The index that measures builder confidence in this market segment reached its highest first-quarter reading since the start of the index in 2008, and it was the 10th consecutive quarter of year-over-year improvements.

“There are many factors contributing to the positive signs in the 55+ housing market,” said Steve Bomberger, chairman of NAHB’s 50+ Housing Council. “Rising house prices and low interest rates are helping baby boomers sell their existing homes at a favorable price and in turn, purchase a new home more suited to their current lifestyles.”

The nation’s 65-and-older population is projected to reach 83.7 million in the year 2050, almost double the 2012 level of 43.1 million, according to the U.S. Census Bureau. A large part of this growth is due to the aging of baby boomers (a person born in the United States between 1946 and 1964), who began turning 65 in 2011 and are now driving growth at the older ages of the population.

“The 55+ segment of the housing market is stronger now than it was a year ago,” says NAHB chief economist David Crowe, “helped by factors like rising house prices, which has increased owners’ equity and allowed them to buy in a 55+ community. But there are still some headwinds hampering a stronger recovery, as builders in many markets are facing tight credit conditions and a lack of lots and labor.”

For the full 55+ HMI tables, visit NAHB.