Builder confidence is down on all levels, but the coronavirus has hit the 55-plus housing market particularly hard. The April reading plunged 30 points to 38, the lowest since Q4 of 2012, according to the National Association of Home Builders’ (NAHB) 55-Plus Housing Market Index (HMI).
“Before the coronavirus pandemic, the 55-plus housing market was doing very well and was poised to continue on that path moving forward,” said Harry Miller III, chairman of NAHB’s 55-plus Housing Industry Council and president of Regal Builders LLC in Dover, Del. “Now, many builders are in a holding pattern as potential homebuyers in that age bracket are concerned about visiting sales centers and are waiting to see how the crisis will impact their ability to sell their existing homes.”
“Like the broader housing market, the 55-plus housing market has taken a significant hit due to the effects of the pandemic,” said NAHB Chief Economist Robert Dietz. “While we expect to see some further impacts in the short-term, we do expect the housing market to stabilize later this year and help lead the economy back to more solid footing.”
Source: National Association of Home Builders