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

Listed author(s):
  • Cooper, Daniel H.

    ()

    (Federal Reserve Bank of Boston)

  • Luengo-Prado, Maria Jose

    ()

    (Federal Reserve Bank of Boston)

This paper analyzes household formation in the United States using data from two cohorts of the national Longitudinal Survey of Youth (NLSY)—the 1979 cohort and the 1997 cohort. The analysis focuses on how various demographic and economic factors impact household formation both within cohorts and over time across cohorts. The results show that there are substantial differences over time in the share of young adults living with their parents. Differences in housing costs and business-cycle conditions can explain up to 70 percent of the difference in household-formation rates across cohorts. Shifting attitudes toward co-habitation with parents also play a role.

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File URL: https://www.bostonfed.org/publications/research-department-working-paper/2016/household-formation-over-time-evidence-from-two-cohorts-of-young-adults.aspx
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File URL: https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/wp1617.pdf
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Paper provided by Federal Reserve Bank of Boston in its series Working Papers with number 16-17.

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Length: 34 pages
Date of creation: 15 Nov 2016
Handle: RePEc:fip:fedbwp:16-17
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  1. Greg Kaplan & Sam Schulhofer-Wohl, 2012. "Interstate Migration Has Fallen Less Than You Think: Consequences of Hot Deck Imputation in the Current Population Survey," Demography, Springer;Population Association of America (PAA), vol. 49(3), pages 1061-1074, August.
  2. Lisa Dettling, 2016. "Effects of entering adulthood during a recession," IZA World of Labor, Institute for the Study of Labor (IZA), pages 242-242, April.
  3. Andrew Paciorek, 2016. "The Long and the Short of Household Formation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 44(1), pages 7-40, February.
  4. Dettling, Lisa J. & Hsu, Joanne W., 2014. "Returning to the Nest: Debt and Parental Co-residence Among Young Adults," Finance and Economics Discussion Series 2014-80, Board of Governors of the Federal Reserve System (U.S.).
  5. Bleemer, Zachary & Brown, Meta & Lee, Donghoon & Van der Klaauw, Wilbert, 2014. "Tuition, jobs, or housing: what's keeping millennials at home?," Staff Reports 700, Federal Reserve Bank of New York, revised 01 Jul 2017.
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