1.   At a time when household formation rates suggest we should be going in the opposite direction, simply to stand still.

2.   There is the tendency towards higher headship rates and more household formation.

3.   A promising route is indicated by work undertaken at the Policy Studies Institute on the complex relationships between household formation and total population.

4.   Household formation refers to setting up a household, and buying all the appliances and furniture to outfit it.

5.   Others are betting that good economic conditions, such as job creation and consumer confidence, will offset a slump in new household formation.

6.   Still, household formation is slowing.

7.   The reason is that new-home building tracks the growth rate in household formation, which has been declining.

8.   Those who bet demand will slow point to a declining rate of household formation, a lack of pent-up demand and consumer debt burdens.