Econintersect: The expansion in net new household formation has averaged about 1/3 the number for 2009-2011 as was experienced in the preceding decade before the Great Financial Crisis.
The decline in net new household formation for the last four years has contributed to the significant decrease in the demand for housing. (GEI News) It results from many sources but one of the significant causes is fledglings returning to the nest, as discussed in the following info graphic from CollegeAtHome.com:
Sources:
- Household Formation and the Great Recession (Timothy Dunne, Federal Reserve Bank of Cleveland, 23 August 2012)
- Trulia: National Average Owning 45% Cheaper than Renting Home (GEI News, 13 September 2012)
