Household Growth is Up, Will Housing Starts Follow?

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Growth in households, which includes any group of people living together, is a clear indicator of housing starts. At the far right of the graph new household formation has increased enormously since 2011, and this points to a potential rise in housing starts. Slight murmurs of this trend have appeared in the home price index series, which has risen in nearly all markets the past few months after years of stagnation. The Atlantic attributes this growth to a release of Millennials from their parent’s homes and out into the market, which is a likely result of an improving job market. This will in turn raise rents, as there are more bidders, and then promote increased building activity.

–From The Atlantic and Business Insider

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