Successful relocations depend on strong collaboration, and TRC’s relocation supplier partners play a crucial role in delivering a seamless mobility experience. To help you stay ahead of industry developments, we asked some of our partners to share their insights on the key trends that will impact corporate mobility in 2025. We’re excited to share their perspectives in this blog.
Household Goods Shipments: Rising Costs and Market Disruptions
Corporate relocation programs will continue to be affected by increasing costs, labor shortages, and logistical disruptions in the household goods industry. Several trends are shaping household goods shipping in 2025:
- Smaller Shipments: The average size of household goods shipments is shrinking, reflecting broader trends in minimalism, cost-conscious corporate policies, and the rise of lump sum benefits.
- ESG Considerations: Many companies are pushing for more environmentally friendly packing materials, though these often come at a premium.
- Cybersecurity & PII Protection: With the rise in digital transactions and data exchanges, safeguarding transferee information remains a top priority.
- Geopolitical Risks: Global tensions in areas including the Middle East, Ukraine, and China/Taiwan are impacting freight costs and transit times, as are policy changes such as new and threatened tariffs from the new U.S. administration.
- Labor Shortages: The moving industry faces persistent competition for labor, making it harder to retain qualified crews.
We continue working closely with our household goods partners to help mitigate these obstacles and implement cost-effective solutions.
Temporary Housing: Inflation and Supply Constraints
Temporary housing remains a pain point in relocation due to the constrained supply and rising costs. Key trends include:
- Escalating Costs: Corporate housing rental rates remain high due to inflation, high demand, and interest rate pressures. Additionally, furnishing costs, insurance premiums, and property maintenance expenses are all increasing.
- Limited Corporate Lease Availability: Many apartment complexes are capping corporate leases, while some cities and states are introducing restrictions on short-term rentals.
- Staffing Challenges: Property management companies struggle with labor shortages, leading to slower response times and delayed lease approvals.
- Stricter Lease Approvals: Companies are encountering increased financial scrutiny and background checks, further prolonging move-in timelines.
Relocation managers should anticipate these hurdles and plan for longer lead times when arranging temporary housing.
Real Estate Market: Limited Supply and High Prices
Housing affordability remains a concern for relocating employees, with inventory constraints and high prices persisting. Here’s what to expect in 2025:
- Limited Inventory: The U.S. housing supply stands at 3.8 months, still below the balanced market threshold of 5–6 months.
- Moderate Price Growth: Home prices are up 5.8% year-over-year, but pricing is stabilizing compared to recent years.
- Higher Insurance Costs: Property insurance premiums are expected to rise by 10–15%, adding to affordability challenges for relocating employees.
- Possible Regulatory Changes: The new administration might ease regulations for homebuilders, potentially improving supply over time.
- Buyers’ Agent Commissions: Anecdotal evidence suggests that most sellers are still paying buyer’s broker commissions. When they don’t, many companies are reimbursing this expense on an exception basis.
These factors underscore the importance of using agents with relocation expertise and considering relocation policy tweaks to support transferees in a competitive market.
Mortgage Trends: Financing Challenges for Relocating Employees
Mortgage market conditions will continue to influence relocation decisions in 2025. Key developments include:
- Elevated Mortgage Rates: The average 30-year mortgage rate hovers around 7%, though it might ease closer to 6% by year-end, close to the postwar average. Three-percent rates are not coming back.
- Conforming Loan Limits Increased: The conforming loan cap has risen to $806,500 in most areas, giving transferees more borrowing power.
- Existing Home Sales Remain Low: Many homeowners are reluctant to give up their ultra-low-rate mortgages, constraining supply.
- New Construction as an Opportunity: Homebuilders remain a bright spot, sometimes offering incentives such as rate buy-downs.
- Federal Reserve Actions: Some expect interest rate reductions in 2025, though continued inflation makes this questionable. Regardless, their impact on mortgage rates remains uncertain.
TRC’s relocation-oriented mortgage lenders have developed creative programs to help relocating employees who are facing affordability challenges.
Appraisals: Regulatory Changes and Market Slowdowns
The appraisal industry is adapting to economic shifts and regulatory updates:
- Limited Comparable Sales: Higher interest rates have slowed transaction volume, making accurate appraisals more challenging.
- Automated Valuation Models (AVMs): The Consumer Financial Protection Bureau has issued new quality control standards for AVMs, requiring greater accuracy and oversight (though the future of these standards and CFPB itself remains uncertain.)
- Expanded Appraisal Waivers: Fannie Mae is increasing the loan-to-value (LTV) ratio for appraisal waivers from 80% to 90%, making it easier for some buyers to bypass traditional appraisals.
These developments will impact relocation home sale programs, requiring close collaboration with real estate professionals to ensure fair valuations.
Visa & Immigration: Policy Shifts and Employer Considerations
Visa and immigration rules can make or break a company’s global mobility program. Key trends to watch:
- U.S. Domestic Focus: Due to stricter immigration policies, U.S. employers may prioritize domestic mobility over international transfers where possible.
- Work Visa Backlogs: H-1B and L-1 visa processing times remain extended, necessitating long-term workforce planning. These delays are likely to get worse in the new, immigration-averse administration.
- Remote Work Compliance: Companies with remote international employees must navigate evolving tax and visa regulations.
- Geopolitical Uncertainty: Changing diplomatic relations could impact visa availability, especially in countries with shifting trade policies.
Corporate relocation managers will need the expertise of their relocation management company and immigration partners to implement international assignments while mitigating risks.
Navigating the Future of Corporate Relocation
More than ever, mobility today requires agility and close collaboration among all stakeholders. From rising costs to regulatory shifts and labor shortages, mobility teams must adapt to an ever-changing landscape.
At TRC Global Mobility, we are committed to helping our clients navigate these challenges with expert guidance and innovative solutions. We sincerely thank our relocation supplier partners for their dedication: it truly takes a village to administer a successful relocation or assignment.
Whether it’s securing housing, arranging household goods shipments, or navigating visa and immigration complexities, our team stands ready to support you every step of the way.
