The National Association of Home Builders has an interesting article about the impact the downturn and housing crisis is having on our Demographics. We have discussed the impact of new households not being formed as a results, and we refer to that as the Pent-Up Demand. NAHB estimates this figure to be more than 2 Million households. (That a lot of housing units! Nationally speaking of course.)
The perspective this report brings that I find interesting is that not only are these new Households being delayed in purchasing homes, but they are also not having children. The impact from this will be felt years down the road.
The economic impacts of the ongoing housing crisis include lost jobs, economic growth and household wealth. There are also demographic consequences that result from a weakened housing sector. For example, NAHB estimates that more than 2 million household formations have been delayed due to challenging economic conditions.
Delayed household formations mean that younger families are delaying marriage and having children. This latter effect is clearly seen in theCenter for Disease Control National Center for Health Statistics data on U.S births.
- Wealth Gap for Young Households Growing (eyeonhousing.wordpress.com)