Household formation over time: evidence from two cohorts of young adults

Daniel H. Cooper and Maria Luengo-Prado

No 15-4, Current Policy Perspectives from Federal Reserve Bank of Boston

Abstract: Residential investment accounts for an important component of U.S. gross domestic product, and traditionally plays a strong role in business cycle expansions. U.S. residential investment has improved slowly during the recovery from the Great Recession, despite a relatively strong national rebound in house prices and record low interest rates. An important determinant of residential investment is the household formation rate, which is largely driven by young adults moving out of their parents? homes after completing high school or college. New household formation can be offset when existing households combine, typically through marriage or by moving in with parents or other relatives for economic reasons. This paper uses National Longitudinal Survey of Youth (NLSY) data from the 1979 and the 1997 cohorts to examine how various demographic, economic, and geographic factors influence the rate of household formation among young adults, both within cohorts and over time across cohorts.

JEL-codes: E24 J11 R21 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-11-02
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.bostonfed.org/economic/current-policy-perspectives/2015/cpp1504.pdf Full text (application/pdf)

Related works:
Journal Article: Household formation over time: Evidence from two cohorts of young adults (2018)
Working Paper: Household formation over time: evidence from two cohorts of young adults (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbcq:2015_004

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Current Policy Perspectives from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().