Written by Charles Staky
As the temperature rises in the spring and summer months so does the demand for moving services. It is no secret that summer is the busiest season in the moving business and while the market as a whole is in an upswing, some housing markets seem to be hotter than others.
The bulk of U.S. citizens tend to lean toward metropolitan areas for their moving destinations making states with medium to large cities that are growing and modern popular destinations across the county. A few regions that fit this description stand out more than others though, and that is something franchises should keep their eyes on. Florida, North Carolina, and Texas house seven of the top 10 fastest-growing cities in the country and eight of the top 10 cities for millennials. As a result these three states draw a much higher volume of people to them leading franchises serving these areas to take advantage.
All three states offer several advantages other than just their warm weather, one of which is affordable housing options. Due to rebounding prices from the 2008 housing crash, buyers in these states can get very good deals for their money. This, however, doesn’t seem to be the most important factor in mover’s decisions as most of the popular growing cities have median home prices of $250,000 and above, coincidentally placing these home buyers in the TWO MEN AND A TRUCK® target market. Both citizens of Florida and Texas do not pay an income tax adding another incentive to the mix, which may also explain why many professionals and their families find these states attractive. Overwhelmingly though, healthy job markets with continued job growth seem to be the strongest draw to each of these areas.
Florida is a surprising front runner for housing markets seeing as it was one of the hardest hit states in the 2008 housing recession. But as the market recovers, retiring baby-boomers are flocking to Florida and they require key essentials including housing, healthcare, and daily retail goods. The increase in demand for those items is causing a need for more jobs, and as more retirees move south, the job market continues to grow which further strengthens the economy. The state of Florida is seeing this boost as a whole with statewide growth among TWO MEN AND A TRUCK® Florida franchises up 16.84% in 2015, topping out at more than $40 million in revenue. The average retiree fits well into the target market for TWO MEN AND A TRUCK® as they would much rather use their disposable income to hire a moving service than move items themselves.
The Texas job market has taken a blow recently from falling oil prices worldwide, however the state’s housing market has somehow continued to grow. This growth can be seen with newer franchises in Texas, such as our three-year-old Austin Northeast location which is growing at 31.79% in 2016. If they stay on pace, their hard work would mean nearly $800,000 in revenue. A possible reason for this is that northern Texas is extremely attractive to large companies including Apple, Facebook, and Google which all have roots in cities such as Austin and Dallas. These companies continue to grow drawing thousands of new jobs to the state every year. Affordable housing coupled with the well-paying IT, finance, and healthcare jobs provided by these large companies require a good education and have more TWO MEN AND A TRUCK® target customers moving to the lone-star state than the oil industry can turn away.
The third housing hot spot is North Carolina which highlights the booming city of Charlotte. The biggest reason for North Carolina growth is its emerging power as a center. The Charlotte franchise has grown consistently from 2010 to 2015 at a lofty 65.45%, no doubt feeling the benefit of the growing job market around them. In fact, Charlotte is the second largest banking center right behind New York’s Wall Street. Beyond finance you can find the same draws mentioned for Florida and Texas, with the healthcare and service industries feeling growth due to the state’s growing population of retirees that now call North Carolina home. Similarly, several fortune 500 companies have headquarters in North Carolina including Bank of America, Lowe’s, and Family Dollar who rank at the top of the list. Each of these industries require an educated work force and create new jobs often. That coupled with the decorated local educational institutions of Charlotte and surrounding cities make the state of North Carolina very appealing to relocating families in need of TWO MEN AND A TRUCK®’s help.
Trends in the moving industry change often, sometimes without warning, but even in years where they are trending down, there are more than enough opportunities in most markets for franchises to grow. TWO MEN AND A TRUCK® holds a strong presence in these states with 38 franchises in the state of Florida, 20 in Texas, and 11 in North Carolina. With plans to introduce 30 new franchises by the end of the year, it is an exciting time to be at TWO MEN AND A TRUCK®!
TWO MEN AND A TRUCK® is the first and largest franchised moving company. Let us move your career forward. Consider investing in us and becoming a franchisee today! Visit franchise.twomenandatruck.com to learn more.