Friday, September 18, 2015 – My co-worker Peg Furnas and I attended the two day Great Lakes Relocation Council Conference along with our counterparts in the relo industry in Pittsburgh, Cincinnati, Columbus, Cleveland, and Detroit. And, although Executive Arrangements doesn’t have realtors on staff, and we don’t make any money on real estate transactions (100% of our income comes from our corporate clients – it keeps us objective), we have learned a lot about what’s on the minds of those who are moving for a job.
Peggy Smith, President & CEO of Worldwide ERC (the Workforce Mobility Association) and one of the conference’s keynote speakers, shared these interesting factoids:
- Home ownership is at its lowest since 1967 with only 63.4% as homeowners.
- Stop complaining about the potential for mortgage rates to inch back up to 4% as these are the lowest percentages in our lifetimes!
- 1970s average was 8.86%
- 1980s average was 12%
- 1990s average was 8.12%
- 2000s average is 6.29%
- States slowest to bounce back from the real estate collapse are: Florida, Arizona, Illinois, Michigan, Rhode Island, and Utah. Most are still 25% off pre-recession values. Notice Ohio is NOT in this list
- Ten hottest real estate markets in the US:
- Seven cities in California including: San Francisco, Los Angeles, San Diego and San Jose
- In the past 5 years the typical rental rose 15%, and the average income of renters rose only 11%.
- The average monthly rental cost of a New York City one-bedroom apartment is now $3,037 and in San Francisco it’s $3,213 – makes Cleveland and Akron rentals seem quite the deal!
- in the past, 60% of relocating families would buy homes in their new city, with 40% renting. In the past 5 years that has done a complete reversal with the majority of newcomers to a new city renting for at least the first year. Some because they don’t want to risk two mortgages, some are underwater on a former home, and some just want to get to know a city prior to investing a large amount of money. In any event, many smaller Midwestern cities like Cleveland don’t have as many rental options as other cities, mainly because housing has always so affordable in NE Ohio that even 20somethings often buy instead of rent. It’s especially tough when newcomers want to rent a single family home in a suburb with a particular public school system in mind, which shrinks options further. Newcomers should be encouraged to be open minded and flexible to find the best fit.
- And, if you are planning to move to San Francisco (1% vacancy rate), good luck finding a home or even a parking space for your car when you arrive at work. Parking has become so tight that an app called SpotOn was created to connect those looking for parking in the city with those who have driveways, garages, or yard space they can use. Gotta love American entrepreneurs!
Executive Arrangements can help your company attract and retain the best possible talent by creating the best first impression of Cleveland or Akron/Canton for out of town candidates and transferring employees. For more info on how we can help educate, connect, and acclimate, call us at 216.231.9311.