A topic reviewed often here is the negative impact on housing affordability due to rising prices combined with rising interest rates. After years of improving affordability beginning in 2008 (due to falling prices and falling interest rates), the affordability index has experienced the largest year over year decline in 25 years.
Trulia reported this week that there has been no increase in young adults moving out of their parents homes or getting jobs over the past year. The percentage of millennials living with their parents actually rose to a staggering 31.6%. The rising cost of home ownership and the inability for the youth to gain any employment traction is causing a lower level of new household formation.
Trulia also reported this week that 10.2% of all housing units are currently vacant and 53% of those vacant units are currently being held of the market as shadow inventory.
For more on the U.S. housing market see:
U.S. Housing Update: Rates Rise, Prices Fall, Pending Homes Sales Plunge
h/t Sober Look, Zero Hedge