Is Household Formation Coming? And What Does it Look Like?

January 14, 2014 2:11 pm

Here is an interesting paper just issued by the Kansas City Federal Reserve regarding the state of household formation in the United States, one of the largest drivers and predictors of future housing growth.  The paper suggests that the robust growth that occurred in the 1990s and 2000s tailed off as population growth slowed in this country due to less migration and fewer births.  But even with a reset baseline based on new Census Bureau information, there is still a large gap between what household formation should have been and what the United States is actually experiencing.

The article concludes that household formation should begin ramping up in 2014 in the multi-family sector and a moderate return in 2015 for single family houses.  The paper also argues that the long-term trend suggests declining (albeit still the majority of household formation) numbers for single family and increasing numbers for multi-family products.  This would be consistent with demographic trends occurring throughout the country of a return to the core of metropolitan areas and moves away from suburbs.

This is a very interesting article and I thank Dan Wisner at Osprey Homes for keying me into it.

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Beware! Builders Targeted by Patent Trolling Company

February 19, 2014 0 comments

Last week, several Portland/Vancouver Metropolitan area home builders received a demand letter from Savannah IP, Inc (“Savannah”) asserting patent rights over certain commonly used moisture removal processes.  The letter references what appears to be a validly issued patent number (Patent No. 8,567,688, linked here at and bombards the recipient with a number of requests, including a ten day response deadline, the signing of a very overbearing patent license, and, of course, payment for the privilege of using the license. Savannah appears […]

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Local Government Update: Clark County

June 20, 2014 0 comments

The County is moving forward with several projects. First comments were due last month on the draft stormwater code and new stormwater manual. The BIA submitted several comments and have met with staff to address our concerns, especially those related to the modifications that resulted from the Phase I stormwater appeal. Recently, several developer and builder members expressed concerns in regard to the speed of the final plat process. The GAC engaged the County through DEAB to address the process […]

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A Little Relief from the Storm(water)

April 13, 2012 0 comments

Washington’s legislature finally adjourned early Wednesday morning.  With the passage of the budget came a bill critically important to local jurisdictions and the business community.  Senate Bill 6406 passed both houses and it has been delivered to Governor Gregoire for signature. As this is a lengthy bill that does many things, it warrants more than one post.  What is critically important in this post is to note what the law does for the requirements of the forthcoming NPDES municipal stormwater […]

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Letters of Intent: Let me be perfectly clear…

August 1, 2014 0 comments

By Attorney and Shareholder Robert Koury The economy’s emerging recovery is causing many businesses to increase the pace of their transactions. In the race to show good faith and serious intent to proceed with deals (including, but not limited to, the sale or lease of real estate or business assets), parties are moving quickly through the process of memorializing the terms of their proposed business arrangement—the negotiation of a “letter of intent,” “memorandum of understanding,” or similar agreement. A letter […]

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