Slow Economy Increases Relocation Rate in the US

October 28, 2010

Based on Milestone Relocation Solutions Inc., a national moving company's, performance data for the years 2008, 2009 and 2010, demand for moving services in the United States market increased by a huge margin, compared to years 2007 and 2006. This means that residents of the US lately have been relocating even more often than during the years of economic growth.

Based on Milestone Relocation Solutions data, there are 2 tendencies observed: people have been moving from larger cities to suburbs locally, as well as relocating to less-populated and less-expensive states across the country.

Cities like Atlanta, Orlando, Miami, Washington DC and Chicago have been seeing a lot of population relocating to less-expensive suburban areas. Another interesting fact is a decrease in an average move size time-wise, which suggests people are cutting down on their furniture and other goods that are not of the major importance, as well as tendency of people moving to smaller residences. While several years ago residents tended to look for more spacious places to settle in, economic uncertainty seems to have made them adjust the living habits and choose smaller, therefore more affordable, houses or apartments.

Another interesting observation would be moving to less-populated states with a lower cost of living. Based on the study, loss of professional jobs made a certain pool of people, especially young professionals, trade the bigger and more expensive cities they had come after graduating and being hired by large firms with high salaries into smaller rural areas where cost of living is much more affordable.

In conclusion, it must be noted that the tendencies described above did not do harm to relocation industry. On the contrary, although average revenue per job and profit margins suffered, overall profitability, due to increased number of moves, has gone up compared to 2006 and 2007. Ironically, this can be credited to slower and, at one point, barely alive economy, which left people no other choice but relocate to smaller, less expensive residencies in less expensive geographical areas.

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