The U.S. housing glut is being compounded by the lowest rate of household formation since 1947, according to an IHS Global Insight report.
Until the financial crisis, household formation increased by an average 1.3 million a year from 2002 to 2007. Between March 2009 and March 2010, households rose by just 357,000 -- the smallest increase since 1947, according to new Census Bureau data.
"The household formation rate is at a record low," said Global Insight economist Patrick Newport. In 2009, household formation rose by 398,000.
"The sharp drop in household formation largely explains why the housing glut remains stubbornly high, despite the plunge in housing starts in recent years," Newport said.
By region, households increased in the Northeast, Midwest and South, but fell in the West.
