The “pent-up demand” for housing is stuck right now with high unemployment. If we can get jobs creation going, allowing the younger age group to move out and create new households, the housing market will start to hum along.
These “doubled-up” households are defined as those that include at least one “additional” adult – in other words, a person 18 or older who is not enrolled in school and is not the householder, spouse or cohabiting partner of the householder.
Young adults were especially hard-hit, with 5.9 million people ages 25 to 34 living in their parents’ household in 2011, up from 4.7 million before the recession. That left 14.2 percent of young adults living in their parents’ households in March 2011, up more than two percentage points over the period.
This age group that is now stuck living with their parents is what the market needs back in the workforce and buying houses. There is a potential for this to come down the pipeline in a wave, creating a shortage of housing believe it or not. It all depends on how we pull out of this recession/or recovery.
For a good analysis of this Census report, check out Calculated Risk
- Twin Cities Real Estate Market Pent up Demand (craigkamman.wordpress.com)