Our connections to service partners, clients and national Chambers provide Movenet's US office based in Chicago an exclusive insight into the struggles for relocating employees to, and within the USA. Recently, we have noticed changes in the housing market to be of most concern causing a stall in mobility. Inflation, rising rates and lowered consumer confidence appear to be having a freeze effect on the demand for both the rental and buying market.
The inventory of US homes actively for sale has increased by 26.9% from September '21 to September '22. Realtor.com’s recent housing data release reveals a stagnant housing market with homes selling less quickly than last year. We also see an increase of homes for sale in 36/50 of the largest US Metro areas compared to last year. This affects relocating employees as rising interest rates lower the population of eligible qualified first-time home buyers, thus forcing many to consider renting instead.
The effects of COVID 19 continue to be felt as the working-from-anywhere trend continues to take precedence and leasing traffic numbers coming in well below 2021 levels. As inflation rates soar, the FED responds by pushing rates even more aggressively, making it clear there will be no attempt made to normalize. Similar to buyer traffic, leasing traffic fell below 2018-2019 levels for summer and early fall '22. As a result, we anticipate net absoption to come in far below expectations during leasing high season, and asking rents will begin to lower as well.
Movenet will stay engaged with our resources and share updates with our clients, friends and family as new information emerges. Stay tuned.