High housing costs have played a role in suppressing household formation over the last 25 years. When people can’t find an affordable home for themselves or with a partner, they end up living with parents or roommates instead. This can be seen in the headship rates over time: back in 2000, about a third of people in their twenties were the head of household, either by themselves or with others. By 2019 that had fallen to a quarter. For some this may be preferable, for others, suboptimal. A recent report from Up For Growth, based on changes in household formation since 2000 estimated there were 108,000 “missing households” in Massachusetts. When people are unable to settle down—as homeowners or renters in a stable situation, it’s harder for them to grow roots in a community. It is harder to create social connections.
How housing costs prevent people from settling down