How Increased Mortgage Rates Impact the Moving Industry: What Can Movers Do?
The Moving Industry’s Expanding Services
The real estate industry and mortgage rates directly impact the moving services industry because before people or businesses move, they need to purchase a new property. With the instability in the current real estate market and skyrocketing mortgage rates, the moving industry is feeling the pressure of a loss of customers.
Moving companies should look to expand their services to survive the negatively impactful real estate and mortgage rate changes. Let’s break this down.
Increased Mortgage Rates Reduces Residential Moving
Current mortgage interest rates are hovering between 7 – 8% due to skyrocketing inflation in the U.S. economy. This forces homeowners to remain in their current houses they bought at a 2.5% interest rate years prior because they cannot afford rising costs. Because fewer people are purchasing homes, there is a decreased need for moving services.
Post-Covid, there have been price increases across most industries that impact everyday life, and real estate is no exception. Additionally, slow population growth and elevated interest rates will likely decrease demand for new residential construction. If an existing homeowner or first-time buyer purchases a house in this market, moving companies that are fast, well-priced, reliable, and offer a menu-driven approach to services will be most likely to get their business.
2024 Residential Moving Trends
The moving industry continues to see an inbound increase in relocation to states including Florida and Texas. Locations including Charlotte, NC, Jacksonville and Orlando, FL, and South Carolina remain popular residential areas for families to move to. The trend toward migrating to southern cities continues to increase in the United States.
However, individuals and families are moving away from high-taxed cities and going elsewhere. While southern states remain popular, northern states including Maine and New Hampshire have seen growing housing markets as well.
In 2024, the top five states that recorded the highest rates of inbound moves were:
- Maine
- North Carolina
- New Hampshire
- Montana
- Washington
Moving Services Industry Changes to Remain Competitive in 2025
While the costs for both local, cross-town and cross-country moving have increased over 2023, Relo Solutions Group has maintained our prices in order to best serve our customers. As we move into 2025, the moving services industry does not know what to expect regarding mortgage rate and inflation fluctuation. Because competition is fierce, moving services need to offer more than just maintained prices.
Movers need to be as diverse as possible with the services and support they offer. Residential move customers are looking for competitively priced, comprehensive moving services that can offer a full moving solution to reduce the burden of the relocation process. This means regular moving companies need to offer additional services including storage, final mile, palletization and coordinating freight, debris removal services, warehousing, office moving, loading and unloading labor, reassembly etc. to help customers justify higher moving prices. To remain competitive, moving companies need to challenge themselves and their capabilities, and stretch their comfort zone to adjust to customer needs.
Impact on the Moving Industry
At Relo Solutions Group, we provide high-quality and dependable specialty moving services to ensure your relocation process is as smooth as possible. Whether you need specialty crating for valuable artwork, installation services for your appliances or anything in between, Relo Solutions Group is here to help!
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