But an estimated 2.4 million households have gone missing in this recession, as young adults have opted to move in with their parents amid high unemployment, low incomes and tight credit.

Without a surge in household formation, housing will not be able to make it back to normal anytime soon.

-- Written by Shanthi Bharatwaj New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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