Not many in the construction industry are optimistic about the state of the 55 and older housing market, though apartment communities for older Americans are considered one of the sector's few bright spots.
A report from the National Association of Home Builders revealed that those in the construction industry hold largely negative opinions regarding the overall state of the adult housing sector. Confidence is especially weak for single-family homes. The group's 55+ Housing Market Index for single-family homes reported a reading of 15 in this year's third quarter, down five points year-over-year. The condo sector also lost confidence, reporting a reading of 10. However, confidence in the mature rental market remains comparatively high, with builders more confident regarding both present demand for apartments a reading of 28 – which garnered a reading of 28 – and demand for them over the next six months – which had a reading of a 32.
At the same time, production for new apartments has been low "These statistics indicate that more respondents see some strength in rental demand compared to the number who see any growth in production of new rental apartments to support that demand," said the report.
The findings may bode well for property managers in adult rental communities around the country, though many landlords in regular apartment buildings have also reported signing more older Americans to lease agreements. Property managers in California told the Orange County Register that they've seen more demand from former homeowners and Baby Boomers.