- Rising insurance and property taxes have led to fewer people moving, new data shows.
- Those who are moving are typically younger, lower-income families looking for cheaper housing.
- As fewer people move, furniture retailers and other areas exposed to household spending are taking a hit.
Fewer people in the US are moving to new cities, data from Bank of America shows.
Moves across cities fell 4% in the second quarter of 2024 compared to the year before, extending a plunge from a 15% year-over-year decrease this time in 2023. In June 2021, moves soared 32% as people worked from home and ventured further from offices.
The data points to the impact of higher "hidden" homeownership costs like insurance and property taxes, as costs in many areas of the US are up significantly from this time last year, the report says.
Hidden costs of moving are piling on top of higher overt costs like mortgages, the analysts note.
Meanwhile, people who are moving are typically younger or lower-income families relocating to cities with a lower cost of living. Gen Z now makes up 13% of movers, up from 8% four years ago, while households earning less than $50,000 a year account for 18% of movers, up from 12% four years ago.
The BofA analysts say that with less affordable housing and higher costs associated with homeownership, people have less disposable income to fund a move, resulting in many people staying put.
Meanwhile, many Gen Z and lower-income families who are moving are able to do so more easily because they tend to be renters.
With fewer people moving, furniture retail and other moving-related sectors are taking a hit, with spending on home furnishings down 10% year-over-year. Those who are moving have "relatively lower spending power due to being younger and/or on lower incomes," the analysts said.
The analysts said, though, that if would-be movers see any easing of "hidden costs," furniture and appliance spending could bounce back.
"The spending boost to the economy from house moves is currently being held back, but should these costs dissipate, there could be a solid tailwind to moving-related spending and the industries that supply them," the analysts said.