Builder Confidence in the 55+ Single-Family Housing Market Reaches New Record High in Q3 2020

The National Association of Home Builders (NAHB) is reporting that builder confidence in the single-family 55+ housing market reached an all time high in Q3 of 2020, rising 18 points to a reading of 83. Low interest rates and the importance of home continue to fuel demand in the 55+ housing market. The 55+ Housing Market Index (HMI) measures two segments of the 55+ housing market: 1) single-family homes and multifamily condominiums. Each segment of the 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 (high, average or low for traffic). The NAHB produces four indices for tracking supply and demand in the 55+ multifamily rental markets. All four indices rose in the third quarter: present production increased six points to 62, expected future production rose seven points to 61, present demand for existing units climbed 15 points to 76 and future expected demand rose seven points to 71.