Thriving U.S. housing markets and their impact on the moving industry

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 TWO MEN AND A TRUCK Senior Movinghit 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 TWO MEN AND A TRUCKdoubt 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.

Time to move into the moving industry

Two Men and a TruckI know what you’re probably thinking. The moving industry… Why? With the country’s recent economic struggles, this business sector might not be the first to jump out at you; however, it should be. The moving industry is expected to grow over the next five years, bringing in more than $17 billion in revenue. 2014 will see over 14,000 companies within the industry, raking in increased profit margins of 5.2 percent (IBISWorld, January 2014). It’s an evolving industry, creating a vast array of possible employment opportunities and even more revenue.

The trends following the industry aid in this projected growth and show no current signs of stopping.

Housing Market

Although the housing market took a sour turn in 2009, it’s back on the rise in 2014. As this market continues its impressive trajectory, the amount of people needing moving services does, too. This year, the average household disposable income as well as housing starts are projected to increase. This increase in extra cash, coupled with people’s desire to move from their old homes into new ones, will create a greater need for moving services. The increase in housing starts is huge, as typically people who are downsizing don’t often seek extra assistance that will rely on extra costs. This year will see a strong increase in housing starts, ultimately making moving services a hot commodity.

Business Moves

Just as couples and families experience growth and the need to relocate, so do businesses. More and more major brands are experiencing growth, forcing them to adjust their business structures to accommodate expansion needs. Business move profits are expected to increase by 4.1 percent throughout 2014. These business to business moves will allow you to have an enhanced profit and in conjunction, an enhanced revenue.

TWO MEN AND A TRUCK®’s corporate office in fact recently sought a business move. We reached over 100 employees, resulting in the need for a larger space to accommodate this growth. The office is currently under construction as a 20,000 addition is being connected to the existing building, areas on the inside are being expanded, and movers are shuffling in and out with new furniture, all while employees are going on about their daily routines! The company may have had a slight bias, but it’s a pretty safe bet as to what moving service they used.

To further answer the why about getting into the moving industry, why not? These current trends are expected to grow throughout the upcoming years and will provide promise for those who are part of it. In a nut shell, the moving industry will see $15.5 billion in revenue and $805 million in profit, with the expectation of these numbers to rise over the years (IBISWorld, January 2014).

TWO MEN AND A TRUCK® knows all about this growth. The company ended 2013 with 18.8 percent growth over 2012 and more than $300 million in revenue. We know and understand these current trends. We’re excited for the increases that are forecast for the future and we show no sign in stopping anytime soon. So, why not be a part of the industry?

For more information on starting your own TWO MEN AND A TRUCK® franchise location and the performance information available to prospective owners, click here.