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Monday, July 22, 2013

Tuesday: FHFA House Price Index, Richmod Fed Mfg Survey

by Calculated Risk on 7/22/2013 09:41:00 PM

It looks like many people are still "doubling up" or living in their parent's basement. From Josh Mitchell at the WSJ: Economic Casualties: 'Missing Households'

The number of so-called missing households—representing adults who would be owning or renting their own home if household formation had stayed at normal rates since the recession—has increased 4% over the past year, according to an analysis for The Wall Street Journal.

There are now some 2.4 million such people, many of them living with their parents, but also seniors living with their adult offspring and people renting rooms in a home headed by an unrelated person.
The analysis on missing households, performed using census data by Jed Kolko, chief economist of real-estate website Trulia Inc., suggests that four years into the U.S. recovery, slow household formation remains an obstacle to a more robust economy. It is damping demand in the housing market, where home sales have been rising but remain below historical levels.

Young adults "have not regained confidence in the economy enough to start moving out of their parents' homes," Mr. Kolko said. "Even people with jobs are choosing the security ... of living under their parents' roof rather than forming their own households."
• Early, the Zillow Value Index for June.

• At 9:00 AM ET, FHFA House Price Index for May 2013. This was original a GSE only repeat sales, however there is also an expanded index that deserves more attention. The consensus is for a 0.8% increase.

• At 10:00 AM, the Richmond Fed Survey of Manufacturing Activity for July. The consensus is for a reading of 8 for this survey, unchanged from June (Above zero is expansion).