Builders in the 55+ housing market are significantly more optimistic about production and demand for multifamily rental units than they are for sales of single-family homes or multifamily condos, according to a recent report from the National Association of Home Builders (NAHB).

"Like those in other age groups, many people in the mature-market sector are hesitant to buy," said NAHB Chairman Bob Nielsen. "Among the factors keeping prospective homebuyers on the sidelines are ongoing uncertainty about the economy and concerns about selling their existing homes. Low appraisals and tighter mortgage lending criteria are also constraining the market."

He added: "Multifamily rentals are the strongest segment of the 55+ housing market at present. An increase in demand is always good news, but this could also foreshadow a shortage of rental units in the future. Demand is already running ahead of production, and the continuing difficulty in obtaining credit to finance new construction could result in shortages down the road."