This is the discussion I’m having with my clients right now:
2035… between 2035 and 2045, the U.S. is projected to experience the lowest rate of household formation in 100 years.
Why does this matter? Household formation is the engine of economic demand. It drives the need for new housing, furniture, appliances, cars, and a whole host of services. A slowdown here isn’t just a blip; it’s a fundamental recalibration.
Two powerful demographic waves. One is the “Silver Tsunami” – the massive Baby Boomer generation (born 1946-1964) entering their 70s, 80s, and beyond, vacating homes and demanding more healthcare. The other is the smaller, tech-savvy Gen Alpha, just beginning to form households.
