The impact of the housing market on the moving industry in the USA

The housing market in the United States is a complex and constantly evolving landscape that has far-reaching implications for various sectors of the economy. One such sector is the moving industry, which is deeply intertwined with the housing market. When people buy or sell homes, they often need to move their belongings to a new location, and this creates a significant demand for moving services. As a result, the state of the housing market has a direct impact on the demand for moving services, as well as the prices that movers can charge for their services. Best Long Distance Movers has been examining the impact of the housing market on the moving industry in the USA, and we’re here to share all the insights!

What is the impact of the housing market on the moving industry in the USA?

The housing market in the United States has a significant impact on many different sectors of the economy, including the moving industry. One significant way the housing market affects the moving industry is through the distance of moves. When the housing market is strong, people are more likely to move further away from their current location to take advantage of better job opportunities or lower taxes. This creates a higher demand for long-distance moving services, which can be more lucrative for moving companies. On the other hand, when the housing market is weak, people are more likely to move locally. This results in a decrease in demand for long-distance moving services.

The timing of moves is also affected by the state of the housing market. When the housing market is strong, people may be more likely to move during peak season, typically during the summer months. This can create a higher demand for moving services during this time, leading to higher prices and a higher volume of business for moving companies. However, when the housing market is weak, people may be more likely to move during the off-season, which leads to a decrease in demand for moving services.

States with the strongest housing markets and moving trends in those states

To get a better understanding of the moving trends in different states, you need to get familiar with their housing markets. Interestingly, the states with the strongest housing markets in 2022 and 2023 are some of the most moved-out-of states as well. The top states with strong housing markets are:

• California
• Colorado
• Texas
• New York
• New Jersey

California

California is the state with the second-strongest housing market in the USA in 2023. The supply and demand of its market are healthy, and although the number of homes available has been limited in the past. The state’s total housing inventory has doubled compared to 2022, with 56,027 homes for sale. However, California is notorious for its high prices. Although the average home sale price dropped by 6.6% in the previous year, currently, the median home price in California is $705, 300 which is well above the national median of $392,000.

As for the moving trends, California remained one of the most moved-from states in 2022. According to the best long distance movers in California, 12% of the state’s population moved in 2022. A total of 10% of those moves were inbound moves, while 1.67% moved out of the state. At the same time, 1.23% of people moved to California from other states. In total, the state lost 0.44% of its population in 2022 due to moving households. Most people who decide to relocate to other states from California state the high housing prices and living costs as the main reasons they’re leaving.

Colorado

Colorado is one of the top 5 states with the strongest housing markets because of the availability of homes for purchase, as well as their affordable prices. However, a strong housing market doesn’t mean Centennial State is the top-ranking state to buy property. Home prices have dropped in Colorado since 2022, but so has the median income. The median income in the state of Colorado is $75,231, which is around the national average. However, the median home price in 2023 is $536,000, which is higher than the US average. This makes the state not as appealing to buy property, but the availability of homes is what makes its housing market strong. There are 16,857 homes available in Colorado and 46,118 in new construction. Mortgage rates have increased in virtually all states, as well as Colorado, and the 30-year fixed rate in this state is 6.75%.

As for the moving trends, Colorado is one of the states people move to most. In 2022, the state has seen 17.6% of its current population move. While 4.22% of people moved from other states to Colorado, 3.48% moved out of Centennial State, with the best long distance movers Colorado has. Overall, Colorado gained 0.74% in population due to moving households.

Texas

Texas is the top state in the USA for 2023 when it comes to a strong housing market. The Lone Star State has earned the title of the best housing market in the country thanks to having one of the fastest-growing economies. In fact, the economy of Texas is the ninth-largest in the world at the moment. This leads to a constant increase in population, which leads to an increased demand for housing. Luckily, the demand and supply in the state of Texas are well-balanced. With 83,222 available inventory and 248,648 in new construction, Texas has plenty of options available for future homebuyers. Housing is also quite affordable in Texas, which is another reason why its housing market is strong and stable. The median home price in the third quarter of 2022 was $345,000, which is below the national average.

When it comes to moving trends, Texas has been one of the most moved-to states for the last several years. It’s safe to say that the impact of the housing market on the moving industry in the USA state of Texas is significant. The best long distance moving companies in Texas can confirm that every year thousands of people move out of the state, but even more move in. In 2022, 15% of the state’s current population moved. Most relocations were within the state of Texas, or 12.3%, to be precise. However, 1.95% of those moves were people who moved to Texas from other states, while 1.58% were people leaving the state. In total, the population of Texas increased by 0.37% due to moving households.

New York

New York is home to some of the most famous and desirable cities in the world, including New York City, Buffalo, Rochester, Syracuse, and Albany. These cities have a high demand for housing due to their large populations, diverse economies, and cultural attractions. New York City alone has a population of over 8 million people and is a global hub for finance, entertainment, and fashion. As a result, the city attracts a large number of people from all over the world who are willing to pay top dollar for housing. This is precisely why New York state is one of the top 5 states in the USA with the best housing market.

It’s a well-known fact that housing in New York is expensive. The median home price in New York in February 2023 was $760,000, which is almost double the national average of $392,000. At the same time, the demand far outweighs the supply in New York’s housing market. The state currently has 38,554 available inventory and 39,022 in new construction, both of which have decreased since last year.

The high housing prices and living costs make New York one of the most moved-from states in the country. In fact, the state’s population dropped so much from 2020 to 2021 that it was ranked as the biggest dip in population in the entire country. As for 2022 moving trends, according to the best long distance moving companies in New York, 10.5% of the state’s population moved in the previous year. While 8.5% of people moved within the state, 2.29% moved out of New York, and 1.32% of people moved to NY from other states. In total, the Empire State lost 0.96% of its population in 2022 due to moving households.

New Jersey

New Jersey is strategically located between New York City and Philadelphia, making it an attractive option for people who work in these cities. The state’s location also provides easy access to other major metropolitan areas on the East Coast, such as Washington DC and Boston. As a result, New Jersey attracts a diverse range of people from various professions, making the demand for housing high. One of the main reasons why New Jersey is one of the states with the strongest housing markets in the country is its increase in available homes. The supply in New Jersey is 20% higher in 2023 compared to 2022. There are 16,767 homes available for purchase, while 34,795 are in new construction.

The moving trends in New Jersey have mostly been consistent for the last couple of years; more people have moved out of the state than in. In 2022, New Jersey lost a total of 0.91% of its population due to household moves. The best long distance moving companies in New Jersey can confirm that 10.3% of the state’s population moved in 2022. While 1.7% of moves were people moving to New Jersey from other states, 2.61% of the population left the state. This confirms the trend that states with a strong housing market has more long-distance relocations.

States with the weakest housing markets and moving trends in those states

As opposed to states with a strong housing market, the states with a weak housing market usually have a more affordable cost of living but also a weaker economy and lower incomes. The states with the weakest housing markets in the United States in 2023 are:

• Kentucky
• West Virginia
• Florida
• Mississippi

Kentucky

The main reason why Kentucky currently has the weakest housing market in the country is its relatively slow economy and a tight supply of homes for purchase. There are only 8,136 homes for sale in the state at the moment and 13,752 in construction. On top of that, the mortgage rates in Kentucky are among the highest in the nation, with a 30-year fixed rate of 6.79%. Although the homes are relatively affordable, with the median home price of $147,000, which is well below the US average, the housing market still remains weak.

When it comes to moving statistics, the state of Kentucky had an almost identical percentage of interstate moves to and from the state. A total of 14.2% of the state’s current population moved in the previous year. However, the best long distance movers in Kentucky confirm that most of the moves were within the state. Only 2.29% of relocations were out of state, while 2.26% of people moved to Kentucky from other states.

West Virginia

West Virginia is another state with a weak housing market in 2023. The main reasons are its low inventory and decreased new construction. On top of that, the median income has also been decreasing since 2022. The current available inventory in West Virginia is 3,325, but not many homes are actually on the market. Even new construction dropped by 16%. Currently, there are 3256 homes in new construction in West Virginia. Although the median home price is relatively affordable at $129,103, the mortgage rates are quite high, with a 30-year fixed rate of 6.56%.

As for moving trends, 11.8% of West Virginia’s total population moved in 2022. However, the best long distance movers in West Virginia can confirm that most of these relocations were within the state. To be precise, 9.3% of moves were inbound. However, 2.23% of people moved to West Virginia from other states, while 2.28% of the population left the state. In total, West Virginia lost 0.05% of its population in 2022 due to household relocations.

Florida

Surprisingly, Florida is one of the states with the weakest housing markets in 2023. The main reason why are the very tight supply and extremely high demand for real estate. Florida is the fastest-growing state in the country, and real estate is highly sought after. In fact, the Sunshine State is the absolute leader in the number of available homes for purchase, with 87,907 in available inventory. Moreover, there are 196,203 homes in new construction. The median home price in Florida in 2023 is $232,000.

The moving trends in Florida remain consistent, the state is one of the most popular destinations for all outbound moves. A total of 15% of the state’s current population moved in 2022. The best long distance movers in Florida know that most of the relocations were within the state – 11.2%, to be precise. However, 2.83% of people moved to Florida from other states, while 2.15% moved out of state. In total, the state of Florida gained 0.68% of its population in 2022 due to moving households.

Mississippi

Mississippi’s housing market is one of the weakest in the country for several reasons. Firstly, the state has a low supply of available homes. With only 5,784 homes currently on the market, the state of Mississippi is the second-lowest on our list of available home inventory. Secondly, the demand is still low despite the home prices being affordable. The median home price in Mississippi is $125,500, which is well below the national average. Lastly, another big factor that makes the state’s housing market weak is the high mortgage rates. Even with low supply, even lower demand, and affordable prices, Mississippi has a 30-year fixed rate of 6.61%.

All these factors that make the housing market in Mississippi weak also impact its moving trends. However, despite the not-so-hot real estate market, more people moved to Mississippi in 2022 than from the state. The best long distance movers in Mississippi confirm that, in total, 12.2% of the state’s current population moved in the previous year. Most of these moves were within the state, 9.9%. On the other hand, 2.1% of people moved to Mississippi from other states, while 2.04% left the state.

The housing market impacts the moving industry in many ways

The state of the housing market affects not only the demand for moving services but also the affordability of housing and the availability of jobs. Because of that, it’s safe to say that the impact of the housing market on the moving industry in the USA is significant. The housing market and the moving industry are intertwined and highly dependent on each other. It is essential for moving companies to keep a close eye on the housing market’s trends and shifts to adapt to changes and ensure sustainability in the long run.

References:

• https://www.noradarealestate.com/blog/colorado-housing-market/
• https://ipropertymanagement.com/research/moving-statistics
• https://worldpopulationreview.com/state-rankings/median-household-income-by-state
• https://fitsmallbusiness.com/states-with-strongest-weakest-housing-markets/