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Tag Archives: Household Formation Rates

Household Formation Has Accelerated After Eight Years at Low Levels

The two primary drivers of household formation over time are demographic and economic factors, according to Nothaft. For example, household growth averaged about 2 percent annually from the mid-1960s until the early 1980s when baby boomers were at the prime household formation age, but household formation rates halved from 1990 until the mid-2000s when the population of those born in the 1970s, a much smaller birth cohort, reached their 20s.

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