by Calculated Risk on 4/12/2023 10:55:00 AM

Today, in the Calculated Risk Real Estate Newsletter: Remote Work and Household Formation

A brief excerpt:

Back in September 2021, I wrote Household Formation Drives Housing Demand

So what is driving demand for both homeownership and rentals? Household formation!

Over time, housing economist Tom Lawler and I unraveled the household formation mystery. A key driver of household formation was work-from-home.  And this analysis has some significant implications for the housing market and the Federal Reserve (see articles at the bottom of this note).
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Today, economists Adam Ozimek and Eric Carlson published new research: Remote Work and Household Formation

Another important basic fact of housing markets during the pandemic is that there was a rapid expansion of household formation. As Figure 3 shows, household formation surged 2.5% in 2021, more than double the fastest pace post Great Recession.

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