Builders Optimistic About Boomer Buyers

Builders Optimistic About Boomer Buyers

Posted 12/10/2013

iStock_000010297662XLarge_500x333Baby Boomers are approaching retirement age in record numbers and home values are returning to equilibrium. No wonder home builders are feeling optimistic about the 55+ housing market these days.

The National Association of Home Builders’ (NAHB) 55+ Housing Market Index increased 14 points to 50 in the third quarter – the highest it’s been since the index debuted five years ago. Third-quarter results marked the eighth consecutive quarter of year-over-year improvements. The index, which measures builder sentiments about the market, is based on a survey of current sales, prospective buyer traffic and expected sales for the next six months. All three areas showed improvement. The biggest leap was in current sales, which climbed 16 points.

“We have seen steady improvement in the 55+ housing sector as buyers and renters are attracted to new homes and communities that offer the lifestyle they desire,” Robert Karen, chairman of NAHB’s 50+ Housing Council and managing member of the Symphony Development Group, said in a statement. “Although the market is significantly stronger than it has been in recent years, we still have a ways to go to get back to full production.”

Even so, with 10,000 Baby Boomers turning 60 every day, according to the U.S. Census Bureau, continued growth is probable for this market segment, which includes single-family homes, condominiums and apartments. “Consumers are more likely to be able to sell their current homes, which allows them to buy a new home or move into an apartment that suits their needs,” said NAHB Chief Economist David Crowe.