flexiblefullpage - default
Currently Reading

How the COVID-19 Pandemic Shifted Household Formation Among Young Americans

Advertisement
billboard - default
Market Data + Trends

How the COVID-19 Pandemic Shifted Household Formation Among Young Americans

The mid-pandemic housing market offered young Americans a number of new homebuying opportunities. Here's how many took advantage ...


January 30, 2023
Full moving truck outside an apartment building
Image: Stock.adobe.com

The COVID-19 pandemic disrupted decades-old trends in household formation as Millennials reached peak homebuying age and ultra-low mortgage rates led to a nationwide Great Migration. Headship rates of young adults aged 25 to 34 rose by 2 percentage points to 43.1% during the pandemic, the highest level since 2010, the National Association of Home Builders' Eye on Housing reports.

Between 2019 and 2021, the share of young adults living with their parents fell 1.5 percentage points from 21.2% to 19.7%, while the number of young adults sharing housing with roommates decreased 1.4 percentage points from 7.2% to 5.8% amid a two-year housing boom that boosted desire for more spacious and independent living options.

The higher the headship rate, the more households are formed, and the more housing units are needed to be built. For decades, U.S. headship rates of young adults have been declining, suggesting the U.S. housing market has been missing millions of new young adult households. Close to 46% of adults ages 25 to 34 were household heads in 1990 and 2000. Since that time, headship rates for this age group have been declining relentlessly and hit a bottom reading of 40.2% in 2017.

Read more

Related Stories

Market Data + Trends

Homebuyer Desperation Is Leading to a Rise in Real Estate Fraud

Real estate scammers are targeting budget-conscious buyers and wreaking havoc on the for-sale market, and experts say the situation could get worse as market dynamics continue to shift

Market Data + Trends

National Home Prices Fell for the Seventh Straight Month in January

U.S. home prices are cooling as interest rates rise, and these metros are seeing the biggest price corrections

Affordability

US Housing Affordability Is Worse Now Than It Was in 2008

Measurements of housing affordability were worse in December 2022 than at any point leading up to the housing bubble in 2008, but experts say conditions will improve by the end of the year

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.