It's about Household Creation, not Population

Population growth always stimulates the housing market.  It's the roof over your head that is required.  Whether it's for a rental, or a permanent residence, population growth always helps.  However, we learned a few years ago, that another factor had drastically decreased so much that it basically equalized the population growth and had a negative impact on housing.  Both in rentals and new home construction.  That factor is Household Creation.  More people were moving back in together.  Divorcees were staying the same house longer.  Kids moving home after college.  Parents moving in with their kids.  And roommates taking on more boarders, and couch surfers.  And with double digit unemployment, homeless rates soared. 
The good news is, we may be out of the woods soon.  Household creation is on the rise again.  According to RealtorMagazine we are seeing a boom in new households.  Millions of young adults are beginning to move out of their parents’ homes and create new households at the fastest rate since 2007. Some housing experts are predicting these young adults may provide a major jump to U.S. housing starts--possibly by more than 50 percent, even by next year--and increase housing consumption at a rate nearly double that of the past two years, Bloomberg News reports.

Basically, in 2011 3/4 to 1million new households created are expected.  That's fantastic news.  Before the recession, the US would average at least 1 million each year.  But in 2006 we dipped to 900,000 then 800,000 and by 2010 we hit an all time low of 347,000 new households created.  This is welcome relief for the housing market.


full article http://www.realtor.org/RMODaily.nsf/pages/News2011050401?OpenDocument