Ginger MerrickNovember 18, 2022
In 2022, the US housing market has started to settle into its new “normal,” real estate prices in some areas have declined, it is still pricey, but the market can be viewed as stabilizing. With the higher mortgage interest rates many people are finding themselves thinking: should I buy or rent? Employees who are considering a relocation must now consider if they can afford to change their living arrangements and what a change may look like in the new work location.
Looking Back
For most of 2020 and 2021, the housing market has been fast-paced and challenging. For those moving with a corporate relocation, this was made it even more stressful because of how the housing market had changed. Home buyers navigated a fluid real estate market with low inventory which often involved sellers receiving multiple offers, above list price, contingency waivers, price escalation clauses resulting in record sale prices. It was not easy for renters either, there were some areas of the country that had historic low inventory for short and long-term rentals, not to mention the increase in move pricing in 2020 and 2021.
US Census Moving Facts and Figures
These moving statistics* for 2021 give a broad view of where Americans are going:
· 8.4% of Americans moved to a new location in 2021, down from 9.3% in 2020
· Approximately 253,000 people moved to the South from another region
· Approximately 227,000 people left the Northeast to move to another region
· Populations in the Midwest and West remained relatively stable compared to 2020
In 2021, 8.4% of people lived in a different residence one year ago, down from 9.3% in 2020. The 2021 mover rate was lower than all prior mover rates from 1948 to 2020, marking a new historical low. Nearly half of all movers in 2021 cited housing-related reasons for moving, which were also the most prevalent reasons given for moves from 2017 to 2021. The next most prevalent reasons for moving in those years were family-related reasons, job-related reasons and, lastly, other reasons. *U.S. Census Bureau migration report
Average Moving Costs
Moving costs vary depending on the relocation policy benefits offered and many other factors that vary by individual. Relocation moving costs can range between $15,000 to $25,000 for Renter policies and between $80,000 to $100,000 for Homeowner policies. Though the final cost of an employee relocation package varies, there are ways businesses can calculate and reduce these expenditures. As companies create relocation policies, cost is an important factor to keep in mind. It’s not just who you are moving, but all of the specifics such as origin, destination, home values, household goods shipments, etc..
How We Can Help
At InterLink a full-service domestic and International Employee Relocation Management Company, a fluid housing market can bring forth new challenges for relocating employees. Our policy consulting service is based on decades of industry experience, client culture, and market standards.
Blog Post
Organizations that offer relocation benefits to their employees and are governed by formal relocation policies, will typically offer home sale assistance to their transferring homeowners.
..... READ POST
Blog Post
Evolutionary change is currently taking place in Human resources and the Global Mobility/Relocation industry. We are all having to adjust to the ever-changing needs affecting mobile talent.
..... READ POST
Blog Post
If an organization relocates less than 100 employees annually, there is typically an individual in the Human Resources department that is tasked with handling the administration of all relocation benefits/services.
..... READ POST
Blog Post
To say that 2020 has been a strange year for companies around the world is, at this point, just about the biggest understatement imaginable.
..... READ POST
Blog Post
Anyone who has ever created – and followed through on – an Employee Relocation package can speak at great length as to how complex and expensive they can become, depending on varying factors.
..... READ POST
Search