Sharply increasing household formation in the U.S. is likely to play a big part in turning around America's troubled housing market, according to The Economist. The 375,000 households formed last year was the lowest number ever recorded, but research anticipates household formation exceeding the average of 1.3 million a year for the past decade, as the job market recovers. "Combine an end to record low household formation with a period of record low housing construction and you have substantial support for both housing prices and rents," the magazine noted.

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