NAHB’s 55+ Housing Market Indexes (HMIs) are based on a quarterly survey of NAHB members involved in the 55+ housing market. The survey is designed to monitor conditions in three distinct segments of the market: 55+ single-family, 55+ multifamily condo and 55+ multifamily rental.
The 55+ single-family HMI is based on builder perceptions of new 55+ single-family home sales, both current and expected for the next six months and traffic of prospective buyers. The 55+ multifamily condo HMI is based on the same basic components (present sales, expected sales and traffic) for sales of new multifamily condos. For the 55+ multifamily rental market, the survey provides several measures based on ratings of current and expected production of new units, as well as current and expected demand for existing units.
Builders are asked to rate conditions as “good,” “fair” or “poor” (or, for traffic, “high to very high,” “average” or “low to very low”). The responses are used to create diffusion indexes on scale of 0 to 100, where any number over 50 indicates more builders report positive than negative conditions. For the first two segments of the 55+ market (new single-family and new multifamily condo sales), an overall index is provided, based on a weighted average of the current, future, and traffic components. No overall index is produced from the diverse components of the 55+ multifamily rental market.