Experts Say ‘Hidden Costs’ Are Keeping More Americans Tied To Their Homes

Mortgage rates and real estate prices have both been climbing in recent years, but those aren’t the only added expenses tied to a reduced number of people moving nationwide.

A ripple effect

Bank of America recently released a report showing exactly why so many Americans feel priced out of a new home … as well as the toll this trend is taking on various businesses related to moving.

First, let’s take a look at the rapid shift over just the past several years:

• In mid-2021, the remote-work boom fueled a 32% increase in moves.
• Between 2022 and 2023, the number of moves across cities fell by 15%.
• As of the second quarter of 2024, such moves were down another 4%.

And it’s not just real estate agencies that are feeling the pinch. Movers, furniture retailers, and other businesses with a vested interest in moving are seeing their revenue dwindle amid this ongoing decline.

Unfortunately, even if mortgage rates do begin to trend downward as many analysts predict, there are several other expensive reasons that people might not automatically start moving again.

The hidden costs

Higher insurance and property tax rates are contributing to the overarching belief among many Americans that they simply can’t afford to move right now.

Many movers are younger, lower-income renters looking for a less expensive place to live rather than those interested in an upgrade.

The silver lining, if you can call it that, involves prospective movers keeping a laser focus on signs that things are becoming more affordable.

According to the Bank of America report: “The spending boost to the economy from house moves is currently being held back, but should these costs dissipate, there could be a solid tailwind to moving-related spending and the industries that supply them.”

Chris Agee August 6th, 2024

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