Household Formation Weakest Since 2010

Household formation, as measured by occupied housing units, shows the weakest annual growth since 2010.

Owner Occupied Housing

Rental Housing

Given masses amounts of student debt, low household formation is hardly surprising. Yet, it's interesting precisely how that is happening.

A decline in rental occupied units has been matched by a rise in owner-occupied units.

Mike "Mish" Shedlock

If owner occupied housing was declining as the general housing market conditions were improving, then investors and foreign buyers made the largest contributions to the recovery. Investors are very leveraged and will be the first to sell (and at lower than a price for an owner occupied house) once the bear market resumes. I would expect prices to drop quickly due to lack of demand by people intending to occupy their homes..

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