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

Housing
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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Feds to Loosen Mortgage Rules

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The Federal Housing Finance Agency (FHFA) regulates Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks, which control the vast majority of home loans.  The private lenders that fund individual home mortgages bundle those mortgages into securities that are sold to the government sponsored enterprises (GSE’s) and subject to FHFA rules. In response to the housing bust, the FHFA tightened eligibility rules, which increased the risks of private lenders, and compelled them to buy back bad mortgages.  Now […]

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Municipal Stormwater Permit & Manual Modifications

August 7, 2014 0 comments

The Washington State Department of Ecology (Ecology) announced August 6, 2014, it’s  modifications to the Phase I and Phase II Municipal Stormwater Permit and Stormwater Management Manual for Western Washington (SWWMM).  These modifications resulted in part from challenges raised by Phase I and Phase II permittees and the Building Industry Association of Clark County. A summary of the modifications can be found here. Ecology will be accepting written comments on the changes until midnight on October 6, 2014.  A series […]

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Letters of Intent: Let me be perfectly clear…

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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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