Housing Market Fluctuations and Moving Demand
Many factors can affect the current housing market. Some of those things include changing demographics, which affect the ultimate sales price of a home. Interest rates are also a key factor because the lower the rate, the more buyers are interested, but this scenario can also expand demand and drive up prices.
Four other significant factors impact the real estate market:
- Interest rates
- The economy
- Government subsidies and policies
But how does this affect moving demand? Because of the fluctuating market, home buyers are purchasing and selling houses, which drives the moving industry. For example, there is a moving cost associated with relocating employees. You may also incur a moving cost for a corporate relocation, which can add up to a hefty sum and drive up moving costs. Ultimately, moving demand will always exist, whether it’s a buyer’s or seller’s market. So, for moving companies, there is never a “slow season.”
Urbanization and Its Impact
Rapid urbanization and technological and demographic changes are some trends that reshape the cities in which we live, work, and play. These trends, as well as the changing household diversity type, demands, and the residential real estate as a common investment, impact the housing market in larger cities. In most cities, these factors contribute to increasing home prices and shortages of affordable housing.
The Rise of Remote Work and Migration to Suburbs
Remote work is shifting population growth across the United States. Some reasons associated with people moving from more urban areas to the suburbs include several factors.
- High home costs
- Surplus of remote work
- Labor market agglomeration
- Creative start-ups
Most areas that saw a vast increase in population growth included less urban, smaller counties with a higher concentration of vacation communities and homes with extended commute times, which were desirable locations before the pandemic. Previously, people saw city living as the prime spot since this is where more jobs were located, and being in the hub of a booming job market also meant less travel time. This has changed post-pandemic.
People realize they can make the same, and sometimes more, income with creative start-ups. As people learned that living in a cramped city wasn’t their only option, they followed the popular trends in the real estate industry and searched for homes in the suburbs.
Whether relocating to existing homes that were on par with the current market asking price or a custom-made home, people realized city living wasn’t the only option.
Real Estate Technology and the Moving Industry
Technology and Real Estate Markets
Technology plays an important role in the real estate market by giving valuable insights into something you might have overlooked. Technology allows real estate companies to collect data quickly and interpret it. This helps them make better decisions, which positions an individual for great success. Other ways real estate technology helps are by:
- Creating corporate housing offers by following trends
- Exploring unique lender programs
- Helping to facilitate all cash transactions
Technology can also keep operating costs in check due to low inventory. Because brokers are some of the most competitive in the industry, they are often early adopters of the latest technology to stay ahead of the game and commonly invest in things like smart-building technology, automation, and integrated systems.
Technology and the Moving Industry
Whether you’re a local or a long-distance moving company, the moving industry also utilizes technology to help make their work more efficient. For example, moving companies offer the following using the latest technological gadgets:
- Digital moving quotes
- Digital and packing inventory
- Moving trucks with GPS tracking
- Drones and VR property viewing technology
- Virtual payments and signatures
People also ask
Any move is big, especially for long-distance movers. So, of course, you’ll probably have more questions when it comes to national moving companies and interstate movers. Here are a few of the more common inquiries:
What is the future of the moving industry?
Staying on top of trends allows you to navigate through a move successfully. If this is a move for a job, you’ll want to watch for trends that include corporate relocation and corporate housing benefits.
Real estate trends
When it comes to housing prices, look for trends for cash buyers as opposed to those who obtain a mortgage via their bank. If mortgaging, check with those mortgage lenders that offer attractive rates. You want to avoid losing a good deal because you didn’t do your due diligence. Also, serious buyers will always be pre-approved if they are not using an all-cash offer. This lets the real estate companies know you’re serious about purchasing and not simply “pricing the market.”
Over the past five years, the moving rate has declined from approximately 34.9 million residents to just over 26 million. So, which states had the highest moving rate? In 2021, Texas and Florida experienced the highest influx of individuals.
North Carolina, South Carolina, and Arizona together saw approximately 246k people move to their states. In contrast, California saw the greatest exits, to the tune of just over 367k residents, primarily to southern areas, including Arizona and Texas.
New York was close behind with a loss of roughly 350k residents, and Illinois saw just over 122k leave the state. Although many people are cross-state movers, reports indicate that most moves occur locally. Over 80% were local moves in the immediate area. Roughly 7.5% of those vacated their cities but stayed in the surrounding areas.
Those who moved long-distance but stayed in the same state saw an overall percentage increase of slightly over 1%. 2021 saw slightly over 23% of movers leave for longer distant destinations without leaving their current state. Roughly 9.4 million Americans live out of the country. Every year, The percentage of movers leaving the U.S. falls between 2% and 2.5% of the total.
How big is the moving industry?
Despite uncertain economic times, inflation, and market fluctuations, moving companies generate a staggering $86 billion in yearly revenue. The moving industry continuously oscillates between better and good according to the economy, but overall, it has been flourishing in recent times.
Did you know that the average American relocates over ten times throughout their life? People move for various reasons. For cross-country movers or long-distance movers, the main reason is a job, followed by housing prices. Another significant reason for relocating long-distance is better weather conditions. These facts should tell you how big the moving industry is.
What are some interesting facts about the moving industry?
Aside from having a $86 billion annual revenue, the moving industry employs over 120,000 people. The combined yearly payroll for the industry is approximately $3.5 billion. Other interesting facts about the industry include the following:
- The market size has increased by roughly 1.8% in 2022.
- The industry is ranked 18th in the Transportation and Warehousing market.
- Average rates for a cross-state moving company range from $2,000-$5,500, and the average cost for an interstate move is just under $5,000.
- The average age of movers is between 18 and 45 years old, with one or two kids.
- Top states people moved to include New Mexico, Idaho, and Maine, while the top states people moved from are the District of Columbia, New York, and California.
Finding the Best Long-Distance Movers
If you’re considering a move across the country, you’ll want to find the best long-distance moving companies that suit your needs and, of course, your budget. Finding a long-distance moving company is simple. Most customers find the best cross-country moving companies on
- Moving Company Websites
- Google maps
- BBB or Yelp
The highest-quality leads (ex, those companies with the highest conversion rates) were generated by the following:
- The Moving Company’s Website (73%)
- Repeat Customers (60%)
- Referral (53%)
Decoding the Real Estate Market: Unveiling its Direct Impact on the Moving Industry
The real estate market seeks to obtain more buyers and sellers without using inorganic growth strategies (ex, combining with a similar company or acquiring another company). Instead, these companies prefer utilizing organic strategies or maximizing growth from within the company.
So how do they do that? One method is by effectively converting traditional buyers using real estate leads. Start by locating your target audience, then take it to the next level with a buyer persona report. This report serves as a roadmap to all future marketing strategies. In your report, include the following:
- Demographics (age, income, location)
- Home buyers’ goals and motivation
- Preferred communication channels
- Best home financing options
Using this strategy helps obtain organic growth, directly impacting moving companies’ sales.
For example, let’s look at relocation services and how they assist corporations in moving their employees. Relocating employees can be highly stressful. This is why you should use trained relocation and real estate professionals. Many corporations opt to use a one-stop relocation solution.
Once a buyer with excellent credit (or credit steady enough for banks to consider any mortgage pre-approvals) has found their perfect home, they make their starting offer. If not accepted by the seller, the two parties go back and forth until coming to a set price.
The house is considered sold once the seller accepts an offer and the buyer has done a walk-through and a home inspection (or has decided on waiving formal inspections). This is when an agent can suggest a professional mover who has worked well with their other clients.
Most real estate companies have a listing of several movers they suggest to help with the relocation process. Often, new homeowners rely on their agents to offer advice and guidance regarding the entire moving process. One trend is certain; real estate companies and movers (long-distance or local) work together to ensure customer satisfaction.
So, as you can see, real estate trends and the moving industry go hand in hand. You can’t have one without the other. As a trend shifts in one sector, you’ll notice the other soon follows. The bottom line is that both industries see a higher success rate (and profit) when they combine resources.