Household formations increasing, but at slower pace

 

Houses and Mt Hood   Oregon added 36,000 new households last year, according to recent Census data.
   It's not exactly what was expected.
   Economist Josh Lehner reports in his blog, "While the total number of new households in recent years has been about as big as we have seen, it doesn't necessarily mean that household formation is strong. In fact, if we dig into the types of households and who is forming them, we see that within the existing population, household formation is actually pretty weak." 
   Lehner said the growth rate of household formation is not where it would be if it followed the pattern of the mid-2000s, but this could be from young adults today living at home or with roommates and delaying marriage and starting a family.
   "Within the Portland region this decline means there are nearly 28,000 fewer households today among the 25-44 year age group than there would be if household formation rates were the same as back in the mid-2000s. Across all age groups, the decline in household formation rates in the Portland region results in 36,000 fewer households on net."
   Lehner said that difference is about three years worth of new housing construction.
   He did say household formation is up for those who are more educated with higher employment and wages.
   To read more, visit Lehner's blog.