We’ve talked a lot about the housing inventory shortage over the past couple years, but one thing we haven’t covered is if this has any reason to do with the question of, “why are people moving so much lately?” The short answer is yes. This is certainly one of the reasons why inventory is low. Especially because people who had been renting and were able to save up some money because of staying at home, spending less, gaining stimulus money, etc. now have money for a downpayment on a home.
Okay, that all makes sense, but really, why are people moving so much recently? Let’s break it down.
One of the more obvious reasons is that many people shifted to a remote work environment. And not just for 2020 and 2021. Many businesses decided that it was more efficient or feasible to continue with a remote work environment.
According to a 2020 National Annual Movers Study, (yes, it’s a real thing) “57% [of people who cited COVID-19 as an influence on their move] moved due to changes in employment status or work arrangement (including the ability to work remotely).”
Now, this could be a move in the same town but because of the need for more space, a dedicated home office. You know, somewhere where their co-workers couldn’t hear their screaming children on a Zoom call.
This could also be a complete move out of town, state or country. The pandemic put a lot of things in perspective for people, and we think one of them was the question of, “what’s holding me back from being somewhere I’ve always wanted to be?” Whether that was moving closer to family, moving to a state that is more affordable or moving to a place where adventure awaits.
To Be Closer to Family
We mentioned it briefly above, but some people experienced life being too short and losing loved ones to COVID-19. And this put things into perspective for families that didn’t even get to say goodbye in person because of travel restrictions and lockdown orders. Now people are saying, “we can’t let time go by without spending more time with family,” and they’re packing up and moving home or to a place where a majority of their family resides.
Another reason people are moving closer to family is for the help now needed. Schools went virtual and daycares closed, and some parents had to keep working but needed help with childcare. Enter grandma and grandpa or Aunt Suzy who already homeschools five kids so what’s a few more?
Cost of Living
Cost of living is a normal reason people move all of the time, but again, the pandemic shined a light on something – when people have more time given back to them because of loss of job, more time at home, no commute, whatever the reason, it opens eyes.
Many people from both coasts and a few random states from the middle were some of the 10 states that saw people moving out last year. For some, a job loss made it impossible to continue living in their current state, so they moved home or found a job in a more affordable state. For others, because of the opportunity to work remotely, they also saw an opportunity to save money by leaving somewhere else.
Some of our buyers in Kansas City have faced some difficult competition because of this. People have sold their homes in California for astronomical prices and moved to Kansas City with all cash offers on a home. That’s tough to compete with when you don’t have that kind of cash on hand. But cash isn’t always everything, which is why it’s important to work with a solid real estate agent.
So if you’ve wondered, “Why are people moving so much?” we hope we’ve helped clear that up for reasons mentioned above. And again, yes, it’s affecting the market for other buyers, and it’s making it a really fun market for sellers and listing agents.
Whether you’re a buyer or a seller, and you’re in the Kansas City market, we’d love to represent you. At Dani Beyer Real Estate, we’ve been around long enough to see all sorts of fluctuations in the real estate market, and we’re not intimidated by what’s going on. We feel confident in our abilities and our passion for real estate, so don’t hesitate to reach out!