Where Young Adult Household Formation Is Lowest

The share of young adults forming their own households appears to be declining in the U.S. Headship rates have gone down for this age group since the housing crash, particularly in New Jersey and California. 

Prior to the crash, headship rates for this age group was at 46 percent, but as of 2016, the rate had fallen to 40 percent. In California and New Jersey, both with the least affordable housing markets in the nation, have only about 33 percent headship for 25 to 34 year olds, according to the National Association of Home Builders' analysis. By contrast, the West North Central region including North Dakota and Iowa have headship rates of more than half for this cohort. South Dakota, Nebraska and Kansas are close with headship rates in the 48 to 49 percent range.

NAHB’s analysis of the Census data shows that only 40 percent of young adults ages 25 to 34 led their own household in 2016. In comparison, close to 46 percent of adults in this age group were household heads in 1990 and 2000. Rather, increasing numbers of young adults now choose to live with their parents, parents-in-law, relatives or share housing with unrelated mates.

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