Birth Rate and Housing Demand
I saw an interesting presentation yesterday about the demand for housing.
They noted that household formation begins later in life, usually when people reach their 30s. In the last downturn, it didn’t help that the population growth of those in their early-30s has slowed, and they attributed the birth rate going flat in the graph above to Roe vs. Wade in 1973.
But today, those in their early 30s were born in the mid-1980s, when the birth rate was increasing:
Voila, we should have more potential home buyers reaching their household-formation age, and want to become homeowners! Hopefully they can all find good-paying jobs to make it affordable, or the Bank of Mom and Dad swoops in with a big down payment!