This paper investigates the impact of shocks in the unemployment rate on household formation. Prior research has shown that negative economic shocks reduce household formation, but does not inform how long the declines in household formation will persist. Using time series data from 1975 to...

The present economic downturn has been, by many measures, the most severe since the Great Depression. The housing market has been buffeted by large declines in real house prices, caused in part by the collapse of the housing finance system and by continued job losses. While the difficulties in...