Slower household formation remains a drag on housing and the economy

America overbuilt in the run-up to the housing bust, which left an abundance of inventory and led builders to halt or severely curtail construction, which had ripple effects across the economy.

Now surplus inventory has shrunk to pre-bust levels, but builders still aren’t ramping up to build new homes because household formation remains sluggish, according to The New York Times.

That continued lack of building affects the economy to the tune of 1.5 million jobs and slower economic growth, The Times reported.

Source: New York Times