Mortgage Bankers Association | Housing Demand Demographics and the Numbers Behind the Coming Multi-Million Increase in Households
Household formation has been depressed in recent years by a long, jobless recovery. This study, utilizing a comprehensive analysis of data from 1976-2014, a period encompassing several market and housing cycles, provides a projection of much stronger housing demand over the next decade. Favorable economic and demographic trends will combine to create strong growth in both owner and rental housing markets. The precise mix will depend on the degree to which consumer choices, the relative cost of owning vs. renting and government policy’s impact on access to credit favor one or the other.