MyMovingReviews.com has released their annual moving trends 2015 Annual Relocation Data Survey. I wanted to share a few of their data points with you and comment on how some of them influence the plans of real estate investors. These survey responses have some comparisons to the previous year to help us to see trends that may be developing.
• Interstate moves down vs. local: 2015 shows a decline to 60.6 percent from 2014's 63.5 percent figure for people moving out of state versus locally. It's difficult to draw conclusions here, but more local moves may bode well for rental home investors if more renters are simply changing their rental addresses but remaining tenants rather than buying.
• Moving into smaller homes: Continuing a trend from 2014, people are mostly moving into one and two bedroom homes. Rental home investors should pay attention here. If their prospective tenants do not need a larger home, they'll definitely stay away from the higher rents for larger spaces.
• Destinations changing somewhat: In 2014 the top 5 moving destination states were in the East and South. This changed in 2015 to states in the West and South. Of the five busiest 2015 routes, three of them lead to California. That is noteworthy because of the higher home prices in much of that state. This could be an opportunity for rental investors, if they can find the right type of homes that will cash flow well.
• Top 5 states for local moves:
2015: 1. California, 2. Florida, 3. Texas, 4. New Jersey, 5. New York
2014: 1. California, 2. Texas, 3. Florida, 4. New York, 5. New Jersey
Not a lot of changes here from year-to-year, but Texas has been growing its housing and economy overall, and it took second place from Florida.
• Changes in migration flow: Outbound and inbound states have seen some minor changes, but one more major change was California dropping out of the top 10 inbound states, replaced by Nevada. New York, Illinois and New Jersey continued a trend of losing population in 2015.
• Desire to move: The Census Bureau says that nearly 1 in 10 American households reported that they are not satisfied with their current place to an extent that they want to move out. On the other hand, the majority of respondents did not actually move in the next year. For rental property owners, working to improve tenant satisfaction levels could keep occupancy up.
When it came to reasons for moving, employment was in third place behind wanting a better or cheaper home and family reasons in second place. Investors can get some good data for decisions from this report. Knowledge is profitable.