U.S. Builder Confidence in Senior Housing Ends 2013 on Record High

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Builder confidence in the U.S. senior housing market increased sharply during the fourth quarter, with strong increases seen in all segments of the market, compared to the previous year.

The single-family index increased 20 points to a level of 48, representing the highest fourth-quarter reading since the start of the index in 2008 and the ninth consecutive quarter year-over-year increase, according to the National Association of Home Builders.

"We are seeing continued improvement in the 55+ housing market because consumers have gained confidence in the economy and are able to sell their current homes and move into a new home or an apartment that fits the lifestyle they desire," said Robert Karen, chairman of NAHB's 50+ Housing Council. "We expect this optimism from builders and developers to carry on into 2014."

All the components of the 55+ single-family housing market index-- current sales, prospective buyers and anticipated six-month sales - increased from a year ago.

The 55+ multifamily condo HMI increased 16 points to 35, which is the highest fourth-quarter reading in the index's history. All components for the 55+ multifamily condo HMI increased compared to the previous year.

"The 55+ segment of the housing market contains more discretionary purchases so as expected it has taken longer for that segment to join the housing recovery," said NAHB chief economist David Crowe.  "The 20 point year-over-year increase in 55+ HMI for single-family homes matches earlier gains in the NAHB/Wells Fargo HMI for the overall single-family market and surpasses the more recent gains in the other housing segments."

The report also highlighted strong gains for the 55+ multifamily rental indices -- present production increased 12 points to 43, expected future production rose 12 points to 46, current demand for existing units increased 16 points to 54 and future demand increased 16 points to 55.