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 heads 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 Up For Growth report, based on household formation changes since 2000, estimated 108,000 “missing households” in Massachusetts. When people are unable to settle down—as homeowners or renters in a stable situation, it’s harder to grow roots in a community. It is harder to create social connections.
How housing costs prevent people from settling down