Moving services set to grow

The moving services market in US is set to grow by USD 1.95 billion from 2019 to 2024, progressing at a CAGR of 2% during the forecast period, according to Technavio. The moving services market share growth in the US by the residential segment will be significant for revenue generation The decrease in the number of home buyers has resulted in more and more people renting outhouses. In addition, an increase in home prices is forcing people to move from expensive cities, such as California, Arizona, and Colorado, to less expensive cities like Texas, Massachusetts, and North Carolina.

The key factor driving growth in the moving services market in the US is the growth in real estate agenciesThe revival of the housing market from 2010 to 2016 in the US has improved the real estate scenario, which has driven the growth of relocation services in the region. The existing home sales since 2010 increased by $4.45 billion to $ 5.56 billion in 2016. This is due to strong hiring rates and job sales across the US. The overall housing market is expected to grow at a moderate to fast pace during the forecast period. The increase in buyer interest, better credit rates, and overgrowth in the number of sales will drive the market for relocation services. Through affordable housing loans, buyers are investing in houses, which will increase the real estate market in US. Low mortgage rates, population growth, and an increase in buyer interest are further driving the demand for available housing. 

However, the high costs involved with relocation services will be a major challenge for the moving services market in US during the forecast period. Relocation, whether residential or corporate, costs a large amount of money. It costs, even more, when a relocation service operator is hired to do the job. Although relocation services provide an estimate for the cost of relocation, the actual cost figures at the end are always 35%-40% higher than the estimated cost. In addition, the damage of equipment/personnel belongings results in extra costs. This is particularly a concern for corporates as any damage caused to the building during relocation can increase their lease payments. The cost estimated by clients for interstate movement is around USD 800-USD900, and the cost of moving between states is around USD4,000-USD4,800. However, the average cost for moving interstate for both corporate and residential services is between USD 1,150 and USD 2,500, and the cost to move between states comes around USD5,300-USD6,000, which is approximately 35% more than the estimated cos

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