According to a recent study from The Mortgage Bankers Association analyzing the impact of the recent recession on Americans’ propensity to form new households, 1.2 million households were lost from 2005 to 2008. The study, conducted by professor Gary Painter of USC, found that the economic downturn caused young adults to postpone moving out on their own and caused many other Americans to join already formed households. According to Painter, household formation will return to normal by 2012, provided the job market recovers. Still, when household formation restarts, it will disproportionately benefit the rental market first. Only when those renters feel economically secure enough to buy a home, will housing truly recover. More here.
Theresa Springer’s Blog
Renters Hold Key To Housing Recovery
April 12, 2010
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