Conditions Are Ripe for Household Formation

Data from several analysts points to a sharply positive shift in U.S. household formation that has triggered rising demand for all types of housing over the past couple of years, including multifamily and single-family rental and ownership. The researchers note that conditions are ripe for adult children to move out of their parents’ homes and for college graduates to rent their first apartments. Amid the upturn, multifamily housing permit growth has outstripped single-family permit growth. “Assuming job growth remains at or above the current pace,” the analysts conclude, “we expect these trends to continue.” The analysts wrote in a report on housing demand: “We believe steady, if unremarkable, monthly job growth is creating a similar household formation environment for 2013 which should support our positive housing outlook.” | Read More