Friday, July 18, 2014

New Home Starts and Stops

Housing construction has had
A month that's exceedingly bad
And the drop may be due
To Millenials who
Live at home with their Mother and Dad. 

The trouble of this generation
Finding jobs after their graduation
Has certainly stalled 
The stat that is called
The rate of new household formation. 

It's up to America's young
To climb on the opening rung;
From the nest you must fly
So the housing supply
Will not be so much overhung. 

Two loosely related statistics came out on Thursday: first, that the number of US multigenerational households had climbed to a new high; and second, that the number of housing starts had fallen off dramatically in June.  The first datapoint indicates less demand for homes and the second, less supply.

The Pew Research Center, in an analysis of US census data, determined that 57 million Americans, or 18.1% of the population, are living in households that combine young adults and their parents or even grandparents.  This is the largest proportion of such households since the '50s.  Pew sees the trend thusly: "The declining employment and wages of less-educated young adults may be undercutting their capacity to live independently of their parents."   While such arrangements may serve a few purposes, they do directly reduce the demand for housing.

Meanwhile, the Commerce Department announced that housing starts across the USA had fallen by 9.3% in June; in the South, they fell by 30%.  In spite of my poetic license above, most industry people interview by the Wall Street Journal did not blame stay-at-home Millenials for this development, which actually flies in the face of a more broadly upward trend over the last few years.  Many factors were cited, including the lingering effects of wet winter and spring weather; lack of skilled construction labor in some markets; and persistently weak consumer confidence.

However, the multigenerational household trend is not a flash in the pan; it has been building since the '80s, and over the long term it must impact the housing market in a fundamental way.

1 comment:

  1. You have written a good post. The main character of a thesis statement is clarity and concise. These two can prepare an effective thesis statement. It is not necessary that the thesis should be a single sentence. The important thing to follow while preparing the thesis statement is the idea it representing must be crystal clear. The thesis should be limited to the exact topic. The studies done to collect the information about the paper are the supporting points for the thesis. The reader must have a stand for the thesis. In common, the thesis is an argument which the writer is declared the paper. Readers have the right to agree or disagree the statement. In the complete essay the writer should be clear about his stand. It is necessary to a writer to prove his words. The evidence should be included in the paper to convince the readers that the writer’s opinion is true. The thesis is just a start to the paper and the writer has to work through the idea to reach the final statement. The essays are not prepared in one step. The writing process has different stages to prepare a perfect paper. The writer has to start writing with a correct plan. The first thing the writers are doing is drafting. It is the complete outline for the paper with all required document. The writer goes through the paper to decide what to include where. The writer has the option to change some points after drafting. The writer can also polish the thesis statement after the first draft is complete. A solid thesis raises some questions or the arguments in the readers mind. It makes them to read further to get the answer to their thought. The genuine writing service has the excellent writers. You can seek help from the experts to prepare a perfect paper.

    ReplyDelete

Popular Posts