population growth also only helps spur housing demand if density per household is holding or falling. If density is increasing, then it doesnt necessarly have to lead to more demand.
I dont know if that is happening now on a macro level or not, but one of the most often cited reasons for the falling rents we are seeing now is that people are grouping up to save. Kids move in with mom and dad, get a roommate, move into minidorm style living, people let out rooms, convert the garage etc. etc. hell people arent even getting divorced like they use to, all leading to atleast a temporary reduction in housing demand that I see no reason couldnt last for 1-2 years at a minimum. (rent contracts are for a year…)
Cutting your housing expenses by 20%+ can really make a difference in the monthly budget, alot more than not buying coffee at starbucks (unless you are some kinda junky:) ) so it just kinda makes sense.
