Unlocking Opportunities: Key Moving Trends Mortgage Professionals Should Understand
July 22, 2024 Executive InsightsMake Your Move Easy
Save yourself hours of research and way too many phone calls with all of the different home service providers.
Get StartedBy Gabe Abshire
More and more Americans are considering moving to a smaller town or county because they want a simpler life or to be closer to their loved ones. This accelerating trend, seen across the country, did not start during the pandemic either; it was merely exaggerated by the ability to work remotely.
People have adapted to the new reality of remote work, which allows them to make lifestyle changes — including where they live. They now have more freedom to find a place or location that will make them more productive, such as a quiet town with fewer distractions. It’s also more economical — these homeowners can now have a place in a suburb with much lower living expenses without worrying about the long commute. There’s also more chance for work-life balance, allowing them to spend more quality time with family and pets.
Mortgage professionals — whether you are a mortgage broker, lender, or loan officer — can capitalize on these trends and support borrowers moving to various parts of the country or within their respective states. You could help them find houses, inform them of the nuances of each neighborhood, or help them settle in. There are so many ways to aid in making borrowers’ transition into a new community easier.
Remote Work is Nothing New
People moving because they can work from home is not just a reality in 2024. These reasons for making that big step, among other drivers, existed even before the pandemic. The significant increase in housing costs also causes migration between the different U.S. states.
Although the growth of remote work in the 2010s pushed people to move and choose different destinations for various reasons, its dramatic rise in 2020 has made it a crucial driver of domestic migration trends ever since, according to a piece by The Demographics Research Group at the University of Virginia.
A key data point is that a third of workdays were remote in 2023. Working from home has meant that people have more geographic options, increasing their willingness to move away from heavily populated hubs, given that their chosen location offers a better quality of life.
The research group cited the Census Bureau’s 2023 population estimates for each U.S. county. The most notable trend is people moving from large metro areas and counties to smaller metro areas and rural counties, which has continued throughout the U.S.
In 2023, migration out of counties with over one million residents was nearly twice as high as before the pandemic. On top of these, migration into the U.S.’s smaller metro areas and rural counties rose further in 2023 from near-record levels in 2022.
The data clearly show that the pandemic hastened migration trends that were already present during the 2010s in most of the country. Indeed, the growth between now and then has been astonishing. The research group said migration to smaller and more affordable metro areas, such as Knoxville, Tennessee, doubled in the first year of the pandemic. At the same time, migration out of the biggest metro areas also doubled in 2020.
The Census Bureau’s 2023 population estimates show that 2020’s moving patterns seem to have been a demographic turning point and a harbinger for most of the U.S. instead of a fluke.
However, other things caused the shift as well. Ordinary people started to find it less and less affordable to live in the country’s largest urban centers. In fact, the research group said that in the 2010s, population growth in most of the U.S.’s biggest cities started to stall because the cost of living rose. This economic setback pushed people to move to medium-sized and more affordable metro areas, including Charlotte, Jacksonville, and Nashville.
Added to these factors is the rise of social media, which permits smaller cities to quickly copy and raise the quality of their cultural and culinary offerings and amenities to compete with the bigger hubs. And don’t forget the growth of e-commerce sites like Amazon, with its one-day shipping. Services like these are now more accessible to most people and are available nationwide in terms of convenience, so it does not matter where people live.
There are also different reasons for different folks. As the Federal Reserve Bank of Chicago has said, many older people are already moving to their retirement locales with the aging of the Baby Boomers. Some places were attractive for those searching for a warmer climate or wanting to be next to family. Other areas in the country also permitted Baby Boomers to gradually retire by having fewer work hours or working in a different industry.
Role of the Mortgage Professional in the Relocation Process
Mortgage professionals like you must understand these geographic and demographic trends to determine what possible roles you could play in helping borrowers move into their ideal homes in new locales. Do you work as a broker in a mid-range metro area that could attract many families looking for more space? Or are you in a suburb where more and more new entrants are moving in?
You can help borrowers understand market differences across housing markets. Mortgage professionals with networks across the country or expertise in certain regions can advise borrowers on market trends, pricing variations, and property taxes that affect affordability in desired areas. You can connect your clients with reputable real estate agents specializing in the area they are moving to. Loan programs and down payment requirements also differ from state to state, and loan officers can help borrowers get familiar with all the financing options available in their chosen area.
After borrowers zero in on a specific location, loan officers can work on getting the new residents pre-qualified for a mortgage before they even begin looking for property to buy. You can help borrowers understand the various mortgage alternatives open in that area. Closing a mortgage in a different state can involve the inevitable logistical difficulties, including finishing the required paperwork from a distance. As a mortgage professional, you can help borrowers meet deadlines for a seamless closing.
However, the support does not end after the move. Mortgage professionals can remain a valuable resource even after the borrower has settled into their brand-new abode. You can answer questions about refinancing alternatives and home equity loans, competently assisting your clients in making economically sensical future decisions regarding the home they just moved into.
Move Concierge is Here to Help
For those mortgage professionals trying to help their clients move to that perfect neighborhood or close to their family, or prices are climbing out of their reach, whatever their reason, take advantage of the chance to tap this growing market of people moving to different parts of the country.
Move Concierge can help mortgage professionals like you prioritize your clients by making moving much easier for them. Whether it’s a big cross-country move or just to the next county, we can help you assist customers of all ages in setting up their home services by telling us about the services on their moving wish lists. We offer various services, such as finding local movers for the best price, while we make this significant step seamless.
By expanding your services beyond just the execution of a mortgage loan, you are enhancing your connection with the client. And that means that they will remember you – when a friend moves, when they move again – and you will be the person they want by their side.
