DECLINING DEMAND
09/24/2025 |
Between 2010 and 2019, net household formation averaged 1.1 million/year. In 2020, it shrank by 128,000, but in 2021 and 2022 it rose to 1.48 million and 1.27 million, respectively, and that growth was what primarily drove up home prices and rents. In 2023 and 2024 net formations averaged just 507,000/year. With the southern border virtually sealed and net immigration very low, this suggests significantly reduced housing pressures going forward.