In 2Q 2023, household formation in the U.S. reached its highest point since Covid struck, according to a new study of the multifamily capital markets by Newmark. The number of new households established rose by 1.2 million in the quarter, increasing the total for the year to 2.1 million.

"Household formation is thus trending upwards and running consistently above the pre-pandemic average, which should support housing demand," Newmark said.

Some other studies of household formation have been less optimistic about future trends. A Harvard report on the state of the nation's housing issued in July recognized a surge in growth from 2019 to 2022, especially among younger households, but predicted total household growth is likely to slow in the next few years. And an analysis by Marcus & Millichap cautioned that the end of the student loan repayment pause could delay household formation and homeownership.