9 In this downturn, the unemployment rate among younger adults rose by more than among the population as a whole. And when they are unemployed or have low incomes, younger individuals are particularly likely to live with their parents or older family members rather than moving out on their own.
As the unemployment rate continues to decline – albeit likely at a slower pace than any of us would like – household formation and housing demand should increase. One model suggests that household formation could increase to 1–1/2 million or more per year.