The National Association of Home Builders says builder confidence in the 55+ single-family housing market remains strong. In the second quarter of this year, the 55+ housing market index (HMI) increased one point to 67.

Split into two segments, single family and multifamily, the 55+ HMI measures builder opinion’s on current sales, prospective buyer traffic, and anticipated six-month sales. In the single family segment, the 55+ HMI showed sales increased three points to 73, sales expected in the next six months dropped three points to 77, and traffic of potential buyers fell four points to 47.

Meanwhile, the 55+ condo HMI dropped seven points to 57. Nevertheless, this quarter’s reading is the second highest since the inception of the index in 2008. All three 55+ condo HMI components decreased in the second quarter: present sales fell six points to 61, sales expected in the next six months dropped seven points to 63 and traffic of perspective buyers declined 11 points to 44.

Consumer demand for homes in 55+ communities remains strong. However, builders need to manage ongoing supply-side challenges, such as increases in the cost of building materials like lumber, to continue building homes at competitive price points.

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