As an expert in the moving industry, I have seen firsthand the increasing costs associated with relocation. It's no secret that moving can be a costly endeavor, and in recent years, the prices have only continued to rise. But why is it so expensive now? In this article, I will delve into the various factors that contribute to the high cost of moving and provide insight into how customers can plan accordingly. One of the main reasons for the rising cost of moving is the demand for movers. According to numerous surveys, nearly 20% of moves across the country are due to families moving from smaller homes and apartments to larger, better-equipped homes.
While these improvements represent a large portion of total relocations, the remaining 85% are due to other factors such as death, divorce, business transfers, retirement, and young adults moving out on their own for the first time. It's important to remember that movers have physically demanding jobs. They have to pack, load, unload, climb flights of stairs, and lift heavy objects all day, every day. This level of labor understandably comes at a cost. In most cases, movers charge between 4 and 7% of the home's sale price, which can amount to a significant sum of money for expensive homes. When customers pay for their own removals, they tend to focus on basic expenses such as packaging, labor, and transportation.
However, one cost that is often overlooked is lost wages. According to the American Moving and Storage Association, only 20% of moves result in a claim. This means that customers are often left footing the bill for any lost wages due to time off work during the move. Another factor contributing to the high cost of moving is the current labor market. As moving companies face labor shortages and the need to attract and retain qualified carriers, they are forced to increase wages in order to remain competitive.
This increase in labor costs is then passed on to customers, either directly or indirectly, in order for moving companies to stay afloat in an increasingly crowded market. I recently spoke with Joe DiSorbo, owner of a New York-based moving company, who provided insight into the changing patterns of relocation. He noted that many people moving from New York are now heading south along the I-95 corridor to states such as Florida, Georgia, North Carolina, and South Carolina. Similarly, removals from California, Oregon, and Washington are heading to states like Texas, Florida, and Arizona. But what about the cost of moving across the country? According to Forbes Advisor Home, Gregor, a customer who has moved multiple times, researched companies that offered door-to-door services. He found that hiring a moving company was a blessing during his five years living in New York.
However, with the rising cost of living and housing prices in major cities, many customers are finding themselves priced out of their dream homes. While it may be wonderful to sleep in a large master bedroom with dressing rooms for him and her, the reality is that the mountain-sized mortgage that comes with it can feel like a prison. This has led to a shift in moving patterns, as more and more people are opting for more affordable housing options outside of major cities. This shift has created a significant logistical problem for moving companies. They rely on a balance between inbound and outbound moves to keep their trucks full. However, with more people leaving major cities than moving into them, this balance has been disrupted.
As a result, moving companies are facing increased expenses in order to keep their fleets running efficiently. One of the biggest expenses for moving companies is fuel. With the average cost of gas constantly fluctuating, this can have a significant impact on the overall cost of moving. In addition, there are other expenses such as taxes, tolls, permits, and parking fees that can quickly add up. It's no surprise that around 40% of removals occur during the summer months. This is when demand for moving services is at its highest.
With more people relocating during this time, moving companies are able to charge higher prices due to the increased demand. To better understand the impact of these factors on the cost of moving, let's take a look at some statistics. According to data from the U. S. Census Bureau, the top 10 cities with the highest percentage change in population from 2019 to 2020 were all located in Texas or Florida.
Comparing the total population of these cities to the percentage change of people moving, Katy saw a huge 16% change in the number of incoming residents due to its smaller population. So what can customers do to mitigate the high cost of moving? One option is to hire a local moving company. These companies typically charge for packing by the hour, so it's important to ask about their rates for these services before hiring them for the job. Another option is to embark on a long-distance move on your own. However, this comes with its own set of costs such as gas and potential time off work. In conclusion, it's clear that there are many factors that contribute to the high cost of moving.
From labor shortages and increased demand for movers to rising fuel prices and other miscellaneous expenses, it's no wonder that moving can be such an expensive endeavor. As an expert in the industry, I recommend that customers research different moving companies, compare quotes, and select one that best suits their needs while also providing quality service at an affordable price. With a better understanding of why moving is so expensive now, customers can make informed decisions and ensure a smooth and stress-free relocation.
