Recently released data from the National Association of Home Builders (NAHB), shows that the 55+ Housing Market Indexes (HMI) for single family homes posted significant declines in all three components in the first quarter of this year.

According to Consumer Affairs, the HMI’s for present sales dropped 12 points to 62, expected sales for the next six months was down seven points to 68 and traffic of prospective buyers fell 15 points to 34.

“We saw an unusually high 55+ single-family HMI in the 4th quarter of 2016 due to a post-election surge in optimism. As this wears off, confidence is returning to a more sustainable level,” said NAHB Chief Economist Robert Dietz.

“Although builders are struggling with shortages of labor and lots, as well as higher lumber prices, market conditions on balance remain favorable, and we expect solid growth in the 55+ housing sector.”

 

The Real Cause for Concern – a One-Two Punch?

While Dietz sees solid growth ahead, bigger issues are in play.

According to FOX Business, a GOBBankingRates survey showed that one out of every three Americans has absolutely nothing saved for retirement.

Additionally, the average 50 year old only has about $60,000 saved for retirement, and 47 percent of single seniors are almost completely dependent on Social Security. Twenty-two percent of married couples have the same challenge.

With an average of 10,000 baby boomers turning 65 everyday, and many not having the resources to maintain the lifestyle to which they are accustomed, a crisis looms… including affordable housing.

 

A Manufactured Housing Boom?

As MHProNews and MHLivingNews continue to make the case for manufactured housing as a viable solution to hope for the American Dream of home ownership, it also represents an opportunity for those headed into retirement to downsize into a quality residence at a reasonable price. And some in the industry see the opportunity clearly.

“When the National Association of Realtors chief economist says there are more buyers than existing homes available on the market, that should be a huge signal to manufactured and modular home professionals,” said Stan Posey, sales manager at Sunshine Homes of Red Bay, AL.

“We build residential style homes that target the site-built customer,” Posey said. “Some of our retailers and communities are doing very well by targeting the site-built customer.”

One of those retailers is Stan Dye of Star Homes.

Dye told Inside MH recently that about 70% of their buyers first owned a conventional stick-built house.

“The upside opportunity is clearly immense in the residential side of the manufactured home industry,” Posey told MHProNews.

“That, combined with our marketing and sales support to independent retailers and communities, are factors why Sunshine Homes is growing significantly faster than the overall growth rate of the industry at large.

For more on manufactured housing as America’s solution to the American Dream, and retirement, click here. ##

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

 

Submitted by RC Williams to the Daily Business News for MHProNews.

 

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