Big new study out yesterday (From the SF Fed) Household Formation sent to soar (already starting) has been averaging 900k the last 5 years -and Now, set to rise to 1.4-1.5M per year until 2020. LGI Homes is well positioned as Renters become 1st Time Buyers --- the Average Millennial is 26 - just about to enter a 5 year up cycle for home buying.
All Categories of Household Formation Spending are doing well - April Year to Date Retail Sales: Auto up 4.5%, Furniture up 5.6% Building Material Stores up 9.7% -- while Department Store sales are down 3.0%
Even the Retailers who are doing poorly - highlight the positive sales in their Houseware departments -- eg. Best Buy - called out Appliances & Home Theatre. Target called out House and Garden Urban Outfitters did the same.