U.S. Builder Confidence Grows in Senior Housing

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Home builder confidence in senior housing in the U.S. is at its highest level since the National Association of Home Builders began tracking the market in 2008.

The NAHB's 55+ Housing Market Index (HMI) has posted year-over-year increases for seven consecutive quarters, the association announced today.

"Builders and developers for the 55+ housing sector are feeling optimistic as they are seeing more consumers return to the marketplace," said Robert Karen, chairman of NAHB's 50+ Housing Council and managing member of the Symphony Development Group. "With existing home prices rising, consumers are able to sell their current homes and make the move toward either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle."

The NAHB's 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor. An index number below 50 indicates that more builders view conditions as poor than good.

In the second quarter, the index increased 24 points to a level of 53.

"The 55+ HMI for single-family homes almost doubled from a year ago," said NAHB Chief Economist David Crowe. "Sentiment in other segments of the 55+ market housing was strong as well. This is consistent with the increase in builder confidence we've seen in other NAHB surveys recently."

The main challenge for builders in many parts of the country is finding enough buildable lots in desirable locations and finding workers with the necessary skill set, Mr. Crowe said.