Adult community builders report weakness in single-family market

A weak jobs picture has stalled moving activity in the age 55 and over market, making builders of adult communities increasingly less optimistic.

The National Association of Home Builders' Housing Market Index reported that confidence in the single-family mature homes market declined to a reading of 15 in the third quarter, down five points year-over-year. Readings below 50 on the index indicate that more builders are pessimistic regarding the state of real estate.

"Real improvement won't happen until we have better employment numbers, and consumers who are more confident of keeping their jobs," said NAHB chief economist David Crowe. "Those consumers will buy the homes of the 55+ age cohort, so that the mature buyers will be able to move to more appropriate housing."

Confidence in the condo market for older Americans also declined, although the report added that builders' confidence in the rental market is rising. That's a possible sign that those in the construction industry are noting more older Americans moving to rental communities for those aged 55 and older.

A report earlier this fall from Senior Housing News noted rising interest from Baby Boomers in the apartment market. National housing woes have encouraged many of them to consider moving into rentals rather than smaller single-family homes.
 

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