During the Great Recession, household formation in the U.S. was well below historic levels, dimming the demand for new homes. Although many sectors of the economy have experienced sustained recoveries, household growth still lags.
"While other measures of the housing recovery are chugging along – like foreclosures, prices, sales, and construction – household formation is lagging," reports Jed Kolko. "Thanks to years of below-normal household formation, the number of 'missing households' has accumulated."
"The majority of the missing households are young people who aren’t heading up their own households," he explains. "Instead, they’re living with their parents: the share of 18-34 year-olds living with their parents rose from around 27% before the crash to above 31%, where it remains in 2013."
"What will it take for household formation to bounce back? Jobs will help, but the job recovery for young people still has a long way to go. While more young adults are working now than a year ago, their employment rate is still much closer to the worst of the recession than to pre-recession levels."
"It could still take years before young people have built up the savings and economic security to leave the nest," Kolko concludes.
FULL STORY: Sorry, Mom and Dad: The Kids Aren’t Moving Out Yet
Wave of Household Growth Likely Cresting, Relieving Crowded Housing Markets
A recent series of data on the growth of households in the United States reveals the unprecedented scale of housing demand in recent years.
Household Formation on the Rise—For a Surprising Reason
Writing for the Terner Center for Housing Innovation at U.C. Berkeley, Jed Kolko breaks down the data on recent trends in household formation.
Explaining the National Economy's Real Estate Doldrums
Despite the housing boom in certain markets (such as New York, Los Angeles, and San Francisco), the real estate market is nowhere near the economic driver it once was.
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
National Parks Layoffs Will Cause Communities to Lose Billions
Thousands of essential park workers were laid off this week, just before the busy spring break season.
Retro-silient?: America’s First “Eco-burb,” The Woodlands Turns 50
A master-planned community north of Houston offers lessons on green infrastructure and resilient design, but falls short of its founder’s lofty affordability and walkability goals.
Test News Post 1
This is a summary
Analysis: Cybertruck Fatality Rate Far Exceeds That of Ford Pinto
The Tesla Cybertruck was recalled seven times last year.
Test News Headline 46
Test for the image on the front page.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
EMC Planning Group, Inc.
Planetizen
Planetizen
Mpact (formerly Rail~Volution)
Great Falls Development Authority, Inc.
HUDs Office of Policy Development and Research
NYU Wagner Graduate School of Public Service