This annual report summarizes some of the notable recent trends in household and family characteristics and contains detailed demographic data from the March, 1985 "Current Population Survey." The households vary greatly in size and complexity. Some of the aspects of household demography that have important consequences for both consumer demand and public policy are changes in the number and average size of households; the proportion of households which are composed of families; whether families are maintained by married couples; and whether children are present and residing with one or both parents. Additionally, the number of married couple families has increased by 3 percent since 1980, versus an 18 percent increase for other types of families. Household size dropped from 2.76 persons in 1980 to an average of 2.69 persons in 1985. The decline in household size was less during the five years since 1980 than during either of the five-year periods between 1975-80 and 1970-75. The number of households maintained by young adults under 25 years old has declined by 17 percent since 1980. In 1985, about 60 percent of the black family groups that included children under 18 years old had only one parent present, compared with 21 percent for corresponding white family groups. Over 20 tables with detailed census data support the findings. An appendix is included which contains definitions and explanations of the terms and sources used in the report. (APG)