BAML Expects Traditional Housing Market To Return Nontraditionally

Housing growth in the U.S. has been generally sluggish, due in part to demographic shifts and changing cultural norms, a research piece from Bank of America Merrill Lynch noted. But a rebound in certain regions is likely to occur, with housing formation set to grow along with the economy and millennials changing their housing patterns.

Housing supply must adapt to demographic demand trends

Cyclical factors have slowed growth in household formation, including lower labor force participation, higher housing costs and tighter lending standards play significant roles in shaping the demand picture, the June 23 Situation Room report noted. Add to this a demographic pattern of delayed marriage, pursuit of higher education...