The 55+ housing market seems to still be trending upward, according to the latest 55+ Housing Market Index that was recently released from the National Association of Home Builders. According to the results, which are broken down into both single-family homes and condos, builders and developers are continuing to see strong demand for 55 and over housing, and so much so that increasing costs of building materials are making it challenging to meet current demand.
Since HMI tracking started in 2008, 55+ condos received the second highest reading, even despite a drop in points to 57. Present sales, sales expected in the next six months, and traffic of prospective buyers all dropped for both single-family homes and condos, but just about every category for the 55+ rental market saw increases.
As noted by the National Association of Home Builders Chief Economist, strong economic growth and rising home owner wealth are two primary factors that are contributing to current home owners selling their existing home and downsizing to a 55 and over community.
The challenge for home builders moving forward to is manage rising costs for lumber and other building materials in order to keep producing 55+ homes and condos at competitive prices.