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Seniors lead the charge in household formation: Household formation in 2015 was at the slowest rate since 2008. | Tony Seruga
Mar
16

Seniors lead the charge in household formation: Household formation in 2015 was at the slowest rate since 2008.

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You want to know why homebuilders are still reluctant to build even though real estate prices are up? The first reason is the demand in housing is coming for rental properties and building in multi-unit housing is up.  Good assessment on that one builders.  The other reason is that high priced metro areas are seeing Millennials move in with mom and dad.  What is interesting is that the group leading the charge in new household formation is seniors.  Yes, older folks are driving the creation of new households but this may not be what will sustain a long-term healthy market.  After all, it is unlikely that a 75-year old is going to be buying a crap shack with a 30-year mortgage.  What was interesting is that in 2015 net household formation came in at the lowest rate in a generation only behind the epic disaster year of 2008.  So what does this mean for housing overall?…

Seniors lead the charge in household formation: Household formation in 2015 was at the slowest rate since 2008.

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