[quote=outtamojo]
I shoulda said” with the less than trend household formation we are seeing now “(with the expectation that we would get more household formation when the economy eventually improves).
[/quote]
Now that you’ve changed what you said, it does make more sense. And just to clarify, I think what you’re saying is that recent lower household formation is a function of the lousy economy. Fair, and probably, at least in part, supported by the evidence. And that as the economy improves, higher new household formation will follow. The problem with that forecast is that solely relying on economic trends and ignoring demographic trends can lead to faulty conclusions.
The economy may improve, despite the downward trend that began in the early 80’s (thank you reaganomics!), thought it’s less than a certainty. What will not improve is the new household formation age group, which is a function of the birthrate from the late 70’s through the 90’s, and the babyboomers sharply reducing their housing footprint over the next 20 years.
