Builder Confidence in the 55+ Housing Market Continues to Improve in the Third Quarter

Builder Confidence in the 55+ Housing Market Continues to Improve in the Third Quarter

WASHINGTON, Nov. 8 - Builder confidence in the 55+ housing market for single-family homes showed significant improvement in the third quarter of 2012 compared to the same period a year ago, according to the National Association of Home Builders' (NAHB) latest 55+ Housing Market Index (HMI) released today. The index more than tripled year over year from a level of 12 to 36, which is the highest third-quarter reading since the inception of the index in 2008.

"Many builders and developers in the 55+ housing segment are reporting an increase in demand from consumers," said NAHB 50+ Housing Council Chairman W. Don Whyte. "We are seeing improvement in certain parts of the country where people are moving off the fence and either purchasing a home or renting an apartment that is designed to more specifically suit their lifestyle."

There are separate 55+ HMIs for three segments of the 55+ housing market: single-family homes, multifamily condominiums and rental apartments. Each index measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic). An index number below 50 indicates that more builders view conditions as poor than good.

Although all components of the 55+ single-family HMI remain below 50, they at least doubled from a year ago: present sales climbed 25 points to 36, expected sales for the next six months increased 27 points to 42 and traffic of prospective buyers rose 20 points to 33.

The 55+ multifamily condo HMI had a significant increase of 13 points to 23, which is the highest third-quarter reading since the inception of the index in 2008; however, condos remain the weakest segment of the 55+ housing market. All 55+ multifamily HMI components increased considerably compared to a year ago as present sales rose 13 points to 22, expected sales for the next six months jumped 19 points to 29 and traffic of prospective buyers climbed 11 points to 22.

Meanwhile, the 55+ multifamily rental indices, which already recovered substantially last year, showed continued but more modest increases in the third quarter: present production climbed six points to 31, expected future production increased nine points to 35 and current demand for existing units and expected future demand improved two points to 42 and 44, respectively.

"Like other segments of the housing industry, the market for 55+ housing is continuing on a steady upward path, driven by improving conditions in additional markets around some parts of the country" said NAHB Chief Economist David Crowe "While we expect the upward trend to continue as the recovery broadens, the speed of the recovery is being constrained by factors as tight mortgage credit, making it difficult for potential 55+ customers to sell their current homes, and shortages of inputs to construction such as buildable lots that are beginning to emerge in some market areas."

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ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 140,000 members involved in remodeling, home building, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

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New Exhibits, Latest Education Tracks To Be Unveiled At International Builders' Show

WASHINGTON, Nov. 21 - Excitement is building for the National Association of Home Builders' 2012 International Builders' Show (IBS) Feb. 8-11 as planners report pre-registration figures up nearly a quarter over this time last year and dozens of exhibitors have snapped up remaining booths in the last two weeks.

The Orange County Convention Center in Orlando, Fla., will be packed with IBS events featuring expert speakers, opportunities for networking and entertainment, nearly 175 outstanding education sessions, home tours and more than 700 exhibitors with the products and services that make it the largest light commercial construction show in the world.

Home builders, remodelers, designers, architects and developers will fill the classrooms and trade show floor to learn about and examine the latest energy-efficient appliances and insulation products, technical improvement and innovation in roofing, decking and other building supplies, new design trends for the kitchen, bath and outdoor living areas--and everything in between.

"I do about 10 shows a year, but if you said to me I could only do one, it would be this one," said Brian Stowell, president of Crown Point Cabinetry in Claremont, N.H. The company is exhibiting at the International Builders' Show for the third year in a row. In a still struggling housing market, "unless you are there, you are not going to be in front of the people who are doing the jobs," he said.

They will also gain a better understanding of the country's economic outlook at a special presentation by Federal Reserve Chair Ben Bernanke open to all credentialed attendees on Feb. 10.

Thirteen tracks of education--from "Remodeling" and "Green Building and Sustainability" to "Business Opportunities and New Markets"--offer a wealth of information to professionals in all segments of the industry. Sessions detail tools for innovative project financing in a tough lending market, social media tactics specific to new home buyers and other effective marketing tactics, advanced framing techniques, consumer preference surveys for the 50+ buyer--and more.

"Outstanding networking opportunities, special displays and product information for niche markets such as universal design and custom building, and the signature educational events that only NAHB can provide--each of those is reason enough to make plans to attend the International Builders' Show," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev.

Highlights of the opening ceremonies include appearances by hiker Aron Ralston, who survived a harrowing trip through a remote Utah canyon that is retold in the movie 127 Hours, and magicians Penn & Teller.

"I encourage all my home building industry colleagues to visit the Show website at www.buildersshow.com for registration information and a preview of the many activities and events we have planned--and I hope to see you at the International Builders' Show," he said.