| The political ping-pong in Washington has once again impeded any resolution leading to certainty regarding fiscal policy, and therefore continues to limit the potential of the labor market recovery. As a result, household formation rates remain below potential and continue to act as a drag on the nascent housing recovery and consumer spending. However, despite the leadership deficit and its economic consequences, there is no denying it -- a long-term expansion in housing is taking hold.
First and foremost, even at current, below-trend household formation rates, the inventory of vacant housing units will be reduced to pre-crisis levels over the next three years even if housing starts continue to grow at double-digit rates...........................................Full Article: Source
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