Viewpoint Low Household Formation Bad News For Housing

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Realty Viewpoint: Low Household Formation Bad News For Housing
by Blanche Evans
Between the birth rate and immigration, legal and illegal, the U.S. should be adding about 1.2 to 1.5 million households annually. In 2007, we added half that number. What does household growth mean to housing?

Household growth is a good indicator of the economy. When money's tight, people tend to double up. More grown children fail to launch and stay put in their parents' basements, more renters sign new leases, fewer first-time home buyers come to the table, which stifles move-up buyers, and the final result is that home buying stagnates

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