Americans under 40 may increasingly lend support to the economy by relocating, according to Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC.
The attached chart shows the probability that people in that age bracket will change their primary residence during the next 12 months, according to survey results compiled monthly by the Federal Reserve Bank of New York.
May’s figure of 35.7 percent, released yesterday, was the highest since the New York Fed began the survey two years ago. The odds climbed from 34.4 percent in April and 28 percent in May 2014.
“Young America is on the move,” Dutta wrote yesterday in a e-mail that featured a similar chart. Many of those planning to find another home are undoubtedly living with their parents, the New York-based economist wrote.
The rising probability “is an unambiguously positive development” for growth in U.S. households and spending on durable goods, or items that are designed to last more than three years, Dutta wrote.
Household formation slowed in the first three months of this year after peaking in December at the highest level since 2005, according to data from the Commerce Department. Consumer outlays for durable goods declined 0.8 percent in April after setting a record in March, the department’s figures showed.