According to experts from the National Association of Home Builders (NAHB), 2014’s triumphant growth for the housing market indicates a promising outlook for the coming year. With exponential development in single-family housing and the 55-plus housing market, housing starts for 2014 topped one million units – the highest since 2007!
Nationwide housing starts rose 4.4 percent to a seasonally adjusted rate of 1.089 million units in December. These gains in the housing market were largely due to the production of single-family homes, which increased 7.2 percent to a seasonally adjusted annual rate of 728,000 new homes in December. Multi-family starts, however, decreased by around 1 percent to 361,000 units.
As of December 2014, combined single-family and multi-family production had increased in three out of four of the country’s regions. Regions with gains were the Northeast, at a 12.5 percent gain, the South, at 8.8 percent and the West at 5.8 percent. The Midwest region registered a 13.3 percent decline.
The 55-plus housing market has proven to be one of the strongest assets in the real estate industry. According to policy researchers at NAHB, the number of age-restricted single-family starts in the first half of 2014 was equal to the total number of starts in 2012. Consumers in the 55-plus market are searching for homes that accommodate specific needs, and builders and developers have created home plans that meet all of these needs. As the 55 and over population continues to increase, the need for this specific type of housing to accommodate this age group will rise, making the active adult housing segment a promising opportunity for the next several years.
In addition to the rising interest in 55-plus housing, builders and developers have noticed an increase in new home purchases. Just as many consumers are making the decision to buy a new, traditional single-family home as they are able to sell their current home at an acceptable price. Home builders and the overall industry will have increased opportunities for success as the consumer population grows and the economy strengthens.