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

Hottest Markets for Population Growth Rates in 2008

Thanks to the hard work at the US Census Bureau, we now have the latest data on the highest growth rates in the US.

Where are they?
Take a look at the chart to see the top 15 Metros with 1 million or more that have the highest percentage increase of growth from July 07- July 08.

But the bigger question is why are they? What makes these cities so inviting to our nation's inhabitants?

Let's try to determine what they have in common first?

Location seems pretty random: SE, SW, West, NW and Rocky Mountain. We can at least determine that Great Plains, Great Lakes, and NE are lacking representation on our chart. Texas seems to make up 40% of the top 10.
Size tells us something. Notice approximately 10 of the MSA are between 1 and 2 Million in population. This could mean that people are looking for a smaller city with affordability and quality of life, but not wanting to give up the amenities that large Metropolitan areas have to offer. ie... International Airports, Employment Opportunities, Entertainment Franchises or Venues, etc...
Tax Leniency also may be a factor. 5 cities on our list have absolutely no income tax. 1 has income tax on stock and bond dividends only. 2 others have a low flat income tax. And one other has no sales tax.
Job Growth rates. Except for New Orleans, the same cities in this top 15 are also frequent players of high ranking metros for job growth percentages in previous years. For example Raliegh, NC, has consistently been on the top spot of many job growth lists since 2005. Therefore it is not surprising for it to be #1 on this list. What's most impressive though, is the 4.3% growth rate

The more money people can keep in their pocket combined with lower costs of living (including housing) and the ability to obtain and retain employment, are the real drivers to the population rates.

for the press release from US Census: http://www.census.gov/Press-Release/www/releases/archives/population/013426.html