Dive Brief:
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Builders continue to feel optimistic that demand for housing for homeowners older than 55 will grow, according to the latest National Association of Home Builders' 55+ Housing Market Index.
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The index for the fourth quarter of 2014 was higher than the prior quarter and higher than the same quarter a year ago. In fact, the reading was the highest for a fourth quarter since NAHB started the index in 2008, and marked the 13th consecutive month of year-over-year gains, NAHB reported.
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Builders reported a positive outlook for the 55+ market across homebuilding sectors: single-family, condominium and apartment homes.
Dive Insight:
The builders’ optimism seems to rise as home prices do. Older homeowners are often reluctant to list their family homes during a down market, even though they’re ready to downsize or relocate, because they don’t want to lose money on their investments. As home prices rise, that population becomes more willing to put their homes up for sale and buy new ones.