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Builder confidence in the 55-plus market tumbled in the first quarter of 2018, down five points, according to the latest National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI). An above-50 reading indicates more builders have a positive outlook than a negative one; the Index reading for the first quarter was 66.

“Builders and developers for the 55-plus housing sector continue to report strong demand,” said Chuck Ellison, chairman of the NAHB’s 55+ Housing Industry Council, in a statement. “However, there are many places around the country facing labor and lot shortages, along with increased building materials costs, which are affecting production.”

“The decline in the 55-plus single-family HMI is consistent with slight softening of other measures of single-family construction seen recently, likely due to winter weather effects, which may be affecting housing activity in some areas of the country,” said Robert Dietz, chief economist of the NAHB. “However, market conditions overall remain favorable, and we expect gradual continued growth in the 55-plus housing sector.”

Builders are confident in the future 55-plus markets across multifamily and single-family, the Index shows.

Source: National Association of Home Builders (NAHB)

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