An interesting blog piece here from Calculated Risk elaborating on a graph from economist Tom Lawler showing a skyrocketing percentage of people aged 24-34 moving back in with their parents. As I suggested in an earlier demographics article, we have seen an increase in group housing, multi-party leases and children moving back in with their parents due to a lack of employment.
The graph also shows a declining home ownership percentage amongst people under the age of 35. And while the homeownership percentage for this group seems to have returned to a percentage rate that appears to be historical, the number of people still living with their parents is well above historical average. Once the job picture improves these young people will return to the housing market whether it be for a purchase or rental and new household formation should shrink the available inventory considerably.