Economy

Household Formation Rate Sees Steepest Decline In 40 Years

CREDIT:

Although the rate of new housing starts reached a five-month high in June, Jim Glass at the Money Illusion notes that the household formation rate is experiencing its largest plunge of the last 40 years. According to U.S. Census data, before the housing bubble burst in 2007, 1,627,000 new households were created, topping off a decade average of 1,499,000 new households a year. But in 2010, that figure was down to 357,000, a drop of 78 percent from three years before.

Sarah Bufkin

Tags