Millions of Americans have moved due to the Pandemic. In fact, according to research by Pew Research, about 1 in 5 Americans have moved or know someone who has. This includes students moving out of college dorms due to closures, people moving out of the city or communities they see as being unsafe or people leaving housing they can no longer afford.
Who Moved and Why?
Approximately one in ten adults ages 18 to 29 (9%) said they moved due to the coronavirus. This group is one of the most affected by job losses and also campus shutdown.
Reasons for moving included:
- 28% – To reduce risk of contracting the virus
- 23% – College campus closed
- 20% – Wanted to be with family
- 18% – financial such as job loss
These changes are consistent with a study by United Van Lines. Among customers who cited COVID-19 as an influence on their move, the top four most common factors associated with COVID-19 were:
- Concerns for personal and family health and wellbeing
- Desires to be closer to family
- Changes in employment status or work arrangement (including the ability to work remotely)
- Desires for lifestyle change or improvement of quality of life.
Where Did Movers Go?
Among those who moved due to the pandemic, moving in with family was the most common move.
- 61% – Relocated to a family member’s home
- 41% – Moved in with their parents or in-laws
- 16% – Moved in with another relative
- 4% – Moved in with an adult child or in-law
- 13% – Relocated to a second home or vacation home
- 7% – Moved in with a friend
- 7% – Temporary homes such as an apartment or hotel room
- 9% – Moved to permanent housing either through a purchase or rental
People are Moving out of Cities
Rents have fallen in 41 of the top 100 metros in the U.S. such as New York City and San Francisco. Based on a recent COVID Migration Report by Hire a Helper, both of these citiessaw 80% more people move out than move in.
The state that saw the biggest gain in new movers is Idaho. In 2019, 49% more people moved into Idaho than moved out of it. In 2020, that figure was at 103%, meaning twice as many people moved to Idaho than left it, higher than any other state.
What Do Consumers Buy After Moving?
According to NAHB research, not surprisingly, home buyers spend more money on furnishings, appliances and remodeling compared to non-moving owners. For new homes, movers spend 2.6x more than non-movers and for existing homes, movers spend 2x more than non-movers.
For new homes, spend on furnishing is $3,778, which is 5.3x non-moving owners. For property alterations and repairs, new home buyers spend almost as much ($3,729) as buyers of existing homes ($4,085) and also outspend non-moving owners ($2,232) on property alterations and repairs. The specific types of spend varies by group. For example, non-mover and buyers of existing homes spend more on kitchen/bathroom addition or remodeling as well as purchasing and installing new items such as HVAC, electrical and security systems, paneling, flooring, siding, windows and doors.
Millennials and Moving
Research by NAHB also examined the moving behaviors of several generations, including Millennials, the generation of individuals born between 1980 and 1996.
According to the study, millennials are increasingly prefer new homes built for sale over custom-built homes.
Another trend is that Millennials would accept a smaller home or a smaller lot to make home ownership more affordable.
Some interesting findings from the survey include the types of amenities Millennials are seeking:
- Four-fifths of Millennials see a patio as desirable or essential in a home.
- Energy Star rated windows have a combined desirability of 76% for Millennials. For older generations, 90% considered this feature as either essential or desirable
- A laundry room is the most preferred amenity for Millennials
What do Millennials not want? Some items include:
- Bathroom aids (such as grab bars)
- Bikeshare/carshare services
- Two-story family room
- Daycare center
- Roof partially or completely covered by plants
- Wine cellar
Whatever the generation or wherever they move, movers represent a lucrative market that every business should be targeting.
Take a look at how one regional furniture retail chain boosted sales, acquisition and LTV using new mover marketing:
“Our New Movers program is like printing money”
- Since inception, New Movers has contributed an incremental revenue boost of 8.2MM in sales, averaging just over $3MM per year.
- The New Movers program acquired 2,5oo+ new customers that have accrued a combined lifetime value of $6.96MM.
- In total, 5,298 orders are attributed to the New Movers program.
Interested in learning more about V12’s new mover solutions? We provide solutions spanning the entire move cycle, from the moment a house is placed on the market to moving into a new residence. Click here to learn more.