tallim Posted January 13, 2011 Report Share Posted January 13, 2011 I don't know why I've never thought this through properly before, but a bullish argument on property has often been that decreasing household sizes is a trend in itself and a cause of ever increasing demand for housing. I think it might be the wrong way round, decreasing household size is actually a consequence of the number of houses growing relatively more than population. [Household Size] = [Number of People Living in Households] / [Number of Households] If household size is decreasing in a country with an increasing number of people, then the number of households must be increasing even faster than the old ratio. It's even simpler to explain if you do the inverse; 1 / [Household Size] = [Number of Households] / [Number of People Living in Households] = [Households per Person] So as Household Size gets smaller, there are more Households per person. The only way for this not to be true is homelessness, i.e. when number of people living in households is not linearly related to the total population. Link to comment Share on other sites More sharing options...
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