Estimating Suppressed Household Formation
Household formation is a complex process that is impacted by many factors. We explore the variation in household maintainer rates across Canada to estimate the CMA-level effects on household maintainer rates and suppressed household formation using Montréal as a counterfactual, paying attention to differences in age structure and cultural aspects.
(Joint with Nathan Lauster and cross-posted at HomeFreeSociology) TL;DR We develop and elaborate a Montréal Method for estimating housing shortfalls related to constraints upon current residents who might wish to form independent households but are forced to share by local housing markets. Applying simple versions of the Montréal Method to Metro Areas across Canada suggests that Toronto has the biggest shortfall, which we estimate at 250,000 to 400,000 dwellings, depending upon assumptions.