Builders Confident in US Senior Housing

---

Builders in the U.S. are showing increased confidence in the senior housing market, with confidence in the single-family sector reaching the highest third-quarter reading in five years. 

The housing market index for 55+ single-family homes increased 14 points to a level of 50 during the third quarter, the eighth consecutive quarter of yearly increases, according to the National Association of Home Builders. 

"We have seen steady improvement in the 55+ housing sector as buyers and renters are attracted to new homes and communities that offer the lifestyle they desire," Robert Karen, chairman of NAHB's 50+ Housing Council said in the report.

All the components of the 55+ index for single-family homes -- present sales, expected sales in the next six months, and traffic of prospective buyers -- showed growth during the third quarter. 

The 55+ multifamily condominium index increased 14 points to 37 during the third quarter, the highest reading since 2008. All components of the multifamily condo index also showed growth, NAHB reports. 

Despite the increased confidence, the market still has room to grow, the firm said. 

"Although the market is significantly stronger than it has been in recent years, we still have a ways to go to get back to full production," Mr. Karen said. 

The report also highlighted increased confidence during the third quarter for all three 55+ multifamily rental indices -- present production, expected future production and current demand for existing units and future demand. 

"Right now the positive year over year increase in confidence by builders for the 55+ market is tracking right along with other segments of the home building industry," NAHB chief economist David Crowe said. "And like other segments of the industry, the 55+ market is improving in part because consumers are more likely to be able to sell their current homes, which allows them to buy a new home or move into an apartment that suits their specific needs."