WASHINGTON (9/2/15)--Between 13.9 million and 15.9 million households will form over the next 10 years, a pace of growth that would mark one of the strongest decades in U.S. housing history, according to a recent report from the Mortgage Bankers Association (MBA).
The growth in household formation will be driven by Hispanics, millennials, and Baby Boomers, the MBA found.
“Household formation has been depressed in recent years by a long, jobless recovery and by a lull in the growth of the working age population,” said Lynn Fisher, MBA vice president of research and economics. “Improving employment markets will build on major demographic trends--including maturing of Baby Boomers, Hispanics and millennials--to create strong growth in both owner and rental housing over the next decade.”
Jamie Woodwell, MBA vice president of commercial real estate research, said that “35 is the new 25” in terms of the housing market, with millennials spending more time in school and delaying larger life events such as getting married and having children.
“As millennials age and create more housing demand, these long-term social trends will mix with demographic changes and the waning hangover from the Great Recession with a net outcome of increased demand for housing,” Woodwell said.
Trends in household growth by demographic: