Housing blogger Bill McBride takes a puzzled look at a report about Fed Chair Janet Yellen's recent comments about household formations, or lack thereof.
From housing economist Tom Lawler: Yellen on Household Formations “Not Keeping Up;” What Is Her Data Source?
In Federal Reserve Chair Yellen’s surprising “dovish” speech at the Economic Club of New York last week, she noted that a relatively slow pace of household formation was one of the “headwinds” that up to now had continued to restrain the U.S. economy.
I found the statement on the “lagging” pace of household formations somewhat fascinating, in that it is pretty widely known by competent housing economists and demographers that there currently are no good, reliable, or timely data on US household formations. Rather, there are multiple and often conflicting estimates of US household formations calculated based on different surveys conducted by the Census Bureau.