by Calculated Risk on 6/11/2019 11:59:00 AM

IMPORTANT NOTE: The data below is based on the Census 2018 estimates. Housing economist Tom Lawler has pointed out some questions about earlier Census estimates, see: Lawler: "New Long-Term Population Projections Show Slower Growth than Previous Projections but Are Still Too High"

Five years ago, I wrote: Census Bureau: Largest 5-year Population Cohort is now the "20 to 24" Age Group.

Note: For the impact on housing, also see: Demographics: Renting vs. Owning

This month the Census Bureau released the population estimates for 2018 by age, and I've updated the table from the previous post (replacing 2015 with 2018 data).

The table below shows the top 11 cohorts by size for 2010, 2018 (released this month), and Census Bureau projections for 2020 and 2030.

By the year 2020, 8 of the top 10 cohorts will be  under 40 (the Boomers will be fading away), and by 2030 the top 11 cohorts will be the youngest 11 cohorts (the reason I included 11 cohorts).

There will be plenty of "gray hairs" walking around in 2020 and 2030, but the key for the economy is the population in the prime working age group is now increasing.

This is positive for housing and the economy.

Population: Largest 5-Year Cohorts by Year
Largest Cohorts	2010	2018	2020	2030
1	45 to 49 years	25 to 29 years	25 to 29 years	35 to 39 years
2	50 to 54 years	30 to 34 years	30 to 34 years	40 to 44 years
3	15 to 19 years	55 to 59 years	35 to 39 years	30 to 34 years
4	20 to 24 years	20 to 24 years	Under 5 years	25 to 29 years
5	25 to 29 years	35 to 39 years	55 to 59 years	5 to 9 years
6	40 to 44 years	15 to 19 years	20 to 24 years	10 to 14 years
7	10 to 14 years	50 to 54 years	5 to 9 years	Under 5 years
8	5 to 9 years	10 to 14 years	60 to 64 years	15 to 19 years
9	Under 5 years	45 to 49 years	15 to 19 years	20 to 24 years
10	35 to 39 years	60 to 64 years	10 to 14 years	45 to 49 years
11	30 to 34 years	5 to 9 years	50 to 54 years	50 to 54 years

Click on graph for larger image.

This graph, based on the 2018 population estimate, shows the U.S. population by age in July 2018 according to the Census Bureau.

Note that the largest age groups are all in their mid-20s.

And below is a table showing the ten most common ages in 2010, 2018, 2020, and 2030 (projections are from the Census Bureau).

Note the younger baby boom generation dominated in 2010.  By 2018 the millennials have taken over.  And by 2020, the boomers are off the list.

My view is this is positive for both housing and the economy, especially in the 2020s.

Population: Most Common Ages by Year
	2010	2018	2020	2030
1	50	27	29	39
2	49	28	30	40
3	19	26	28	38
4	48	29	27	37
5	47	25	31	36
6	46	24	26	35
7	20	30	32	41
8	45	33	25	30
9	18	58	35	34
10	52	23	34	33