Household formation among young adults shows no sign of recovery via HousingWire

The rate at which Americans formed households fell sharply during the Great Recession, with the greatest shortfall among young adults squeezed financially by the weak economy, according to an economic commentary from a Cleveland Federal Reserve official.

Tighter lending standards are further complicating the housing sector's ability to recover by reducing access to mortgage credit, the commentary said.

“This may have increased the incentive of individuals to delay household formation in order to save for a down payment, build credit histories, or repair tarnished credit scores,” said Tim Dunne, a researcher at the Federal Reserve Bank of Cleveland, who wrote the commentary.

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