Builders in the 55+ housing market are much more optimistic about demand for multifamily rental units than they are for sales of single-family homes or multifamily condos, according to the latest 55+ Housing Market Indices, which are compiled quarterly by the National Association of Home Builders (NAHB).
All components measuring production and demand for 55+ multifamily rental units increased significantly in the second quarter of 2011 compared to the second quarter of 2010. The 55+ Housing Market Indices (HMI) for single-family units and multifamily condos changed little.
“Like those in other age groups, many people in the mature-market sector are hesitant to buy,” said NAHB Chairman Bob Nielsen, a home builder from Reno, NV. “Among the factors keeping prospective home buyers on the sidelines are ongoing uncertainty about the economy and concerns about selling their existing homes. Low appraisals and tighter mortgage lending criteria are also constraining the market.”
The HMIs for single-family homes and multifamily condos measure builder sentiment based on current sales, traffic of prospective buyers, and expected sales six months in the future.
to Daily News