Projecting Household Formations Isn’t All About ‘Demographics’

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May 11, 2015

According to housing economist Tom Lawler, when it comes to analyzing and projecting household formations, it’s not just a matter of demographics.

One of the most common models for analyzing and forecasting household growth is to group the population by age.

But there are several problems inherent to this approach, such as the fact that there are no timely reliable estimates of U.S. households, or that both headship and homeownership rates were quite unstable in the latter half of the last century.

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