The total number of U.S. households with at least one member younger than 50 years old shrank between 2004 and 2014; at the same time, the number with at least one member between 50 and 75 grew. This pattern held true for black and non-Hispanic white households. On the other hand, except for a slight dip among Hispanic 24- to 29-year-olds, the number of Asian and Hispanic households rose across the board.
Check out the Mortgage Bankers Association's chart, Change in the Number of Households by Age, 2004-2014, based on U.S. Census Bureau data.
What's going on?
Among the reasons for losses:
- Aging population; moves into higher age categories, with Generation Xers' and Millennials' attitudes and finances heavily affected by the recession
- Unemployment, underemployment, and stagnant wages
- Debt – student or otherwise
- Suspended household formations
- Household formations in the first half of the 2000s grew faster than in the benchmark year (2000). They've lagged significantly since then.
- An estimated 3.9 million households that normally would have been formed during the years of the recession weren't formed.
- Young adults (18- to 34-year-olds) account for almost 75% of these pent-up households.
And for gains:
- Aging population; moves into higher age categories, with Baby Boomers now ranging from more than 50 to about 70 years old
- Growing non-white populations
Will losses ease up? Time will tell.
Want to receive our weekly blog round up? Subscribe at the right – and each Friday we'll send you our latest blog posts.
Have a comment or question about this post? Email us to let us know what's on your mind.