On a year-over-year basis, household formation hovered mostly below 1.0 million units from 2007 through mid-2014. Over this period, the growth rate in household formation fell below the growth of the civilian noninstitutional working-age population. The direct impact and the lingering effect of the Great Recession clearly depressed household formation. This may be finally about to change, as household formation has exceeded 1.0 million on a y/y basis every month for the past six months through March.
Many of the new households are likely to be seniors living alone or young unmarried adults living either alone or together to share living expenses. These “selfies” are more likely to rent than to buy homes. The percentage of the adult population 16 years or older who are singles has been running around 50% since June 2014. That’s up from 37% in the mid-1970s.
Since 1994 and through 2013, the percent of households with one person rose from 24% to 28%, while the percent with three or more persons fell from 43% to 39%. Since 1970, the percent of households with married couples living with their children dropped from 40% to 20% during 2012. Apparently, young selfies tend to get married later in life. During 2013, the median ages of first marriage for men and women were 29 and 27, up from 26 and 23 thirty years ago.
The homeownership rate for persons under 35 fell from a peak of 44% during Q2-2004 to 35% during Q1-2015. The rate for 35- to 44-year-olds fell from 69% to 58% over this period.
Since 2004, on balance, the number of households who rent jumped by 9 million, while the number who own fell 2.5 million since 2006. As a result, the percent of households who rent rose from a low of 30.8% during Q2-2004 to 36.3% during Q1-2015, the highest reading since Q2-1995.
Today's Morning Briefing: Build & They Will Come. (1) Is housing’s subpar recovery on a good foundation? (2) Demographic profile still favors renters over owners. (3) Household formation is picking up. (4) More younger and older “selfies.” (5) Getting married later. (6) More renters. (7) Millennials and Gen Xers are stuck. (8) Baby Boomers don’t want to cut the grass. (9) Student loan burden. (10) Affordability and availability of credit still hurdles for would-be homeowners. (11) Field of dreams and nightmares. (12) High-end buildings with sky-high rents. (13) Focus on market-weight-rated S&P 500 housing-related industries. (More for subscribers.)
Many of the new households are likely to be seniors living alone or young unmarried adults living either alone or together to share living expenses. These “selfies” are more likely to rent than to buy homes. The percentage of the adult population 16 years or older who are singles has been running around 50% since June 2014. That’s up from 37% in the mid-1970s.
Since 1994 and through 2013, the percent of households with one person rose from 24% to 28%, while the percent with three or more persons fell from 43% to 39%. Since 1970, the percent of households with married couples living with their children dropped from 40% to 20% during 2012. Apparently, young selfies tend to get married later in life. During 2013, the median ages of first marriage for men and women were 29 and 27, up from 26 and 23 thirty years ago.
The homeownership rate for persons under 35 fell from a peak of 44% during Q2-2004 to 35% during Q1-2015. The rate for 35- to 44-year-olds fell from 69% to 58% over this period.
Since 2004, on balance, the number of households who rent jumped by 9 million, while the number who own fell 2.5 million since 2006. As a result, the percent of households who rent rose from a low of 30.8% during Q2-2004 to 36.3% during Q1-2015, the highest reading since Q2-1995.
Today's Morning Briefing: Build & They Will Come. (1) Is housing’s subpar recovery on a good foundation? (2) Demographic profile still favors renters over owners. (3) Household formation is picking up. (4) More younger and older “selfies.” (5) Getting married later. (6) More renters. (7) Millennials and Gen Xers are stuck. (8) Baby Boomers don’t want to cut the grass. (9) Student loan burden. (10) Affordability and availability of credit still hurdles for would-be homeowners. (11) Field of dreams and nightmares. (12) High-end buildings with sky-high rents. (13) Focus on market-weight-rated S&P 500 housing-related industries. (More for subscribers.)
