Builder confidence in the single-family 55-plus housing market was high in the fourth quarter of 2020, according to the National Association of Home Builders’ (NAHB) 55-Plus Housing Market Index (HMI). The index inched down by one point from a record high of 82.
“Builders continue to report a strong market for the 55-plus housing segment,” said Harry Miller III, chairman of NAHB’s 55-Plus Housing Industry Council and president of Regal Builders LLC in Dover, Delaware. “However, in some parts of the country, we are seeing some lost interest in multifamily communities due to COVID-19 concerns.”
Two of the three index components of the 55-plus single-family HMI declined in Q4: present sales decreased one point to 87, expected sales for the next six months decreased by seven points to 83 and traffic of prospective buyers remained flat at 69.
The 55-plus multifamily condo HMI fell four points to 63. All three index components also decreased from the last quarter: present sales decreased by four points to 66, expected sales for the next six months decreased three points to 64 and traffic of prospective buyers decreased six points to 57.
All four components of the 55-plus multifamily rental market fell in the fourth quarter: present production declined six points to 56, expected future production dropped 16 points 45, present demand for existing units decreased 13 points to 63 and future expected demand decreased six points to 65.
“Like the broader housing market, builders are dealing with increased building material costs, labor shortages and a lack of buildable lots,” said NAHB Chief Economist Robert Dietz. “These supply-side issues are making it difficult to meet the strong demand for the 55-plus housing market.”