While higher housing costs and mortgage rates will chip away at buyer demand, the sheer volume of current buyers makes the next buyers’ market appear far away.
Low rates of household formation since the Great Recession have caused 5.7 million “missing” households, a new Zillow analysis finds. These missing households represent people who historically would have moved into their own home but have been unable or unwilling to do so, and should keep housing demand high for many years to come as the market catches up.
Americans of every age group and ethnicity are forming households at lower rates than before the Great Recession, meaning they are either living with parents into adulthood or doubling up with roommates instead of buying or renting a home on their own or with a partner. Lower rates across the board may indicate the market is struggling to provide enough affordable homes overall, not necessarily that a shift in preferences among a particular group is causing the decline.
More at Florida Realtors.