Household Formation is Improving

by Marilou Moursund on November 7, 2012

in Economic Indicators,Employment,housing

Now that the election has been decided, the focus will turn back to the economy and the fiscal cliff. From this

The nation added 1.15 million households in the 12 months that ended in September, according to the most recent Census Bureau data. That is a significant rise from the past four years when an average of 650,000 households were formed annually. While what economists call “household formation” is running a little lower than the average 1.25 million added annually during the boom years, the latest data nevertheless represent an important shift.

Rising household formation, which is tied to employment growth, means more students are finding jobs when they leave college,

more adult children are leaving their parents” homes and more couples feel confident enough about the future to tie the knot. It could also mean that immigration is picking up.

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