Paragon's Consulting Services - Relocation and Housing Trends 2021

 

Paragon Relocation Resources Consulting Services

Over 29 years ago, Paragon formally entered the global relocation services industry as a consulting company, assisting in the development of comprehensive relocation services and global assignment management policies and programs for Fortune 1000 companies. This entrée into relocation is the foundation from which Paragon Relocation evolved into a full-service global relocation company, providing not only the guidance but the coordination, tracking and follow-up to administer programs.

Paragon’s Global consulting team is comprised of seasoned industry professionals who are trained to proactively interact with you and your team, analyze your current state and advise on how to reach your desired future state. Collaboration and “listening to understand” help us to engage with our clients in whatever capacity they need us to so that we may develop a trusted partnership, effectively strategize efficiencies and then deliver on what we promise. We recognize that global relocation services is about much more than just moving people; it’s about successfully managing a corporation’s human capital.

Real Estate & Rental Housing Forecast for 2021

In 2020, the housing market saw the highest pace of sales growth since the height of the unprecedented housing boom in 2005. Despite the negative impact of the coronavirus pandemic on the economy, the housing market has experienced a V-shaped recovery primarily due to historically low interest rates, the importance and value placed on the “home” which has been reinforced by the pandemic, and strong housing market conditions pre-COVID, which led to pent-up demand for homes. As new inventory came on to the market they quickly sold. According to NAR, unsold inventory is nationally sitting at a 2.7 month supply.

NAR Chief Economist Lawrence Yun shared a great presentation at NAR's Real Estate Forecast Summit on December 10, 2020. Below is a slide from his presentation.  Assuming the coronavirus pandemic can be controlled and ALL small and large businesses and their employees can get back to work at full capacity, we may actually experience this positive national forecast.

Rental Housing Trends

The latest numbers suggest that renters are re-evaluating their living arrangements and moving to larger apartments and homes in suburban areas. The movement trends are likely due to the economic challenges brought on by the coronavirus pandemic combined with pre-existing affordability challenges, particularly in big U.S. cities.

National Average Rent Trends

In most markets, monthly rental rates have trended up slightly.  The below chart shows the average monthly rental rates for the last 3 years. As we move into 2021 it is forecasted that rents will increase anywhere from 7% to 12% in suburban markets and hold steady or drop slightly in big city centers as renters flee to areas where they feel safe, have more space and housing is more affordable. 

For furloughed employees, there is some good news for renters and landlords hit hard by pandemic-related income loss. They may have access to some relief from the Federal Government in the form of the Federal Emergency Rental Assistance Program.

Federal Emergency Rental Assistance Program

A new law, signed December 27, 2020, provides for $25 billion in emergency rental assistance. But that money won’t be available right away.

In general, funds will be paid directly to landlords and utility service providers. If a landlord does not wish to participate, funds may be paid directly to the eligible household. These funds must be used for direct financial assistance, including rent, rent that is past due, utilities and home energy costs, utilities and home energy costs that are past due, and other expenses related to housing. For more information please go to https://home.treasury.gov/policy-issues/cares/emergency-rental-assistance-program.

CDC’s temporary eviction moratorium

Some residential evictions for nonpayment of rent can be paused through January 31, 2021, under an order issued by the Centers for Disease Control and Prevention (CDC). The CDC has announced that it will extend the moratorium until March 31, 2021.

For more information please go to: https://www.cdc.gov/coronavirus/2019-ncov/more/pdf/CDC-Eviction-Moratorium-01292021.pdf

Whether you are relocating employees who own a home or are currently renting the impact of the coronavirus pandemic will have a long-lasting effect on them and on your relocation program.

Is it time to re-evaluate your relocation policies to help address the new challenges and opportunities brought on by the worldwide coronavirus pandemic?

If yes, please contact Paragon Relocation Resources at 800-888-6060 or go to our website at www.paragonrelocationresources.com and ask for a free consultation.