Demographic trends and growing builder confidence are blending favorably for many who anticipate the age 55+ housing market will see continued growth.
The share of U.S. households age 55+ is expected to increase from 43.3% in 2014 to 46.6% by 2020, according to projections from the National Association of Home Builders (NAHB).
“The 55 and over population is one that will steadily rise over the next several years, and the need for housing to accommodate that group will also rise,” said Paul Emrath, NAHB’s vice president of survey and housing policy research.
Optimism in future improvement in the 55+ housing sector is echoed by a growing builder confidence that has been steadily on the rise for nine consecutive quarters, according to NAHB’s 55+ Housing Market Index (HMI).
For the past nine quarters, the HMI—which gauges builder confidence in the 55+ housing market—has posted gains above a reading of 50, signaling that more builders view sales conditions as good rather than poor.
“The real estate market has turned around considerably, and now more consumers are able to sell their current homes where it would have been difficult in years past,” said W. Don Whyte, president of Elevated Real Estate Solutions in Biloxi, Mississippi, during the NAHB’s International Builders’ Show in Las Vegas.
Whyte also noted that there are many more options for consumers looking for a home in the 55+ market today than in years past.
“There are more alternatives now than ever before for any lifestyle or location that a person wants,” Whyte said. “Builders and developers understand that they are servicing a population that is considerably different from what it was even five years ago, so there are more homes and communities that meet the specific needs and wants of today’s consumer.”
Written by Jason Oliva