Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
55-Plus Housing Market Continues to Improve
WASHINGTON -- Builder confidence in the 55-and-older housing market for single-family homes showed significant improvement in the third quarter compared to the same period a year ago, the National Association of Home Builders announced Tuesday.
The figures from the latest 55-Plus Housing Market Index of the trade association are more than triple those of a year ago, going to 36 from 12. The 36 is the highest third-quarter reading since the inception of the index in 2008.
“Many builders and developers in the 55-plus housing segment are reporting an increase in demand from consumers,” said W. Don Whyte, NAHB 50+ Housing Council chairman. “We are seeing improvement in certain parts of the country, where people are moving off the fence and either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle.”
There are various 55-plus indices for three segments of the 55-plus housing market: Single-family houses, multifamily condominiums and rental apartments. An index number below 50 indicates that more builders view conditions as poor rather than good.
Although all components of the 55-plus single-family index remain below 50, they are at least double those of a year ago: present sales climbed 25 points to 36, expected sales for the next six months increased 27 points to 42 and traffic of prospective buyers rose 20 points to 33.
The 55-plus multifamily condo index posted a significant increase of 13 points to reach 23, the highest third-quarterly reading since the inception of the index. However, condos remain the weakest segment of this housing market.
All multifamily HMI components increased considerably compared to a year ago as present sales rose 13 points to 22, expected sales for the next six months jumped 19 points to 29 and traffic of prospective buyers climbed 11 points to 22.
Meanwhile, the 55-plus multifamily rental indices, which has recovered substantially during the last year, showed continued but more modest increases in the third quarter: present production climbed six points to 31, expected future production increased nine points to 35 and current demand for existing units and expected future demand improved two points to 42 and 44, respectively.
Published by The Business Journal, Youngstown, Ohio.