Household Formation Beginning to Surge via GlobeSt.com

Although much of the talk about the economy has revolved around the stronger employment numbers, the lack of robust new construction in the single-family market has hobbled the recovery. But Mesirow Financial’s chief economist and senior managing director Diane Swonk notes in her just-released economic report that those solid employment numbers have encouraged more household formations, and in 2015 this should lead to more new construction in the single-family and multifamily sectors.

One worry for many observers was that the impact of the Great Recession on the rate of household formation would be more or less permanent, as the Millennial Generation adjusted its expectations downward. But Swonk now says that a good portion of that shift is “cyclical and that those tides are beginning to turn.”

Read more...Household Formation Beginning to Surge - Daily News Article - GlobeSt.com