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Industry Trends

The 2021 Moving Industry Outlook: What the Data Tells Us

June 14, 20218 min readSusan LeGrice
The 2021 Moving Industry Outlook: What the Data Tells Us

We're halfway through 2021 and the picture is coming into focus. The moving industry isn't just recovering from the COVID disruption — it's being reshaped by it. The migration patterns, customer expectations, and operational challenges emerging this year are fundamentally different from anything we saw pre-pandemic.

Let's look at what the numbers actually say.

Where Are People Moving?

The Great Migration story of 2020-2021 is real, and it's accelerating. USPS change-of-address data, Census Bureau estimates, and moving company booking data all point the same direction.

Out of dense urban cores. New York City lost an estimated 300,000+ residents in 2020, and the outflow continued into early 2021. San Francisco, Chicago, and Los Angeles show similar (though smaller) patterns. Not everyone who left is gone permanently — some are returning — but the net movement is away from high-cost-of-living metros.

Into the Sun Belt and secondary cities. Texas, Florida, Tennessee, Arizona, North Carolina, and Idaho are the biggest winners. Austin's population grew an estimated 3% in a single year. Boise, Nashville, and the Tampa-St. Pete corridor are seeing demand that's outstripping housing supply by wide margins.

From apartments to houses. Remote work gave millions of people the option to trade a 700-square-foot apartment for a 2,000-square-foot house in a suburb or exurb. This matters for movers because house-to-house moves typically generate 2-3x the revenue of apartment moves. Bigger spaces = more stuff = bigger jobs.

For moving companies, this means the geographic demand map has shifted. If you operate in a destination market, you're probably overwhelmed right now. If you're in an origin market, you may have plenty of outbound loads but struggle with backhaul. Either way, your pricing strategy needs to reflect the new supply-demand dynamics.

What's the Housing Market Doing to Moving Volume?

Existing home sales hit 6.5 million units annualized in early 2021 — the highest level since 2006. New home construction is at a 15-year high. Every one of those transactions generates at least one move, often two.

But here's the complication: the speed of the housing market is creating compressed timelines. Homes are selling in days, not months. Buyers are waiving inspection contingencies and closing in 2-3 weeks. That means customers are booking moves with much less lead time than normal.

For your operations, this translates to:

  • More last-minute bookings (14 days or less out)
  • Tighter windows between booking and move date
  • Higher demand for flexible scheduling through your dispatch system
  • More stress on crews who are already stretched thin

If your booking process requires a week of back-and-forth before confirming a move, you're going to miss these customers. Speed to confirmation is a competitive advantage right now. Companies with online quoting that lets customers book instantly are capturing jobs that phone-only competitors lose.

Is the Labor Shortage Real?

Yes, and it's probably the defining challenge of 2021 for movers.

Unemployment benefits, stimulus payments, and shifting worker expectations have combined to make hiring harder than any time in recent memory. The moving industry was already fighting a labor shortage pre-pandemic — the average annual turnover rate for movers exceeds 50%. Now it's worse.

What I'm hearing from moving company owners across the country:

  • Starting wages are up $2-4/hour compared to 2019 levels. Entry-level crew positions that paid $13-15/hour are now posting at $16-19/hour.
  • Sign-on bonuses ($500-1,000) are becoming common for experienced movers.
  • The applicant pool is smaller. Job postings that generated 20-30 applicants two years ago now generate 5-10.
  • No-shows for interviews and first-day ghosting are at all-time highs.

The companies navigating this best are the ones treating retention as importantly as recruitment. If you can keep your existing crew happy and employed year-round (including during the slow winter months), you're ahead of competitors who run a revolving door.

Technology helps here too. Crews that use a crew portal for job details, navigation, and documentation report higher satisfaction than those relying on phone calls and paper. It sounds minor, but small quality-of-life improvements in the day-to-day work experience reduce turnover.

How Are Fuel Costs Trending?

National average gas prices have climbed from $2.25/gallon in January 2021 to over $3.00 by June, a 33% increase. Diesel follows a similar trajectory.

For a truck averaging 8 MPG running 25,000 miles per year, that price increase adds approximately $2,300 in annual fuel costs per truck. A 10-truck fleet is looking at $23,000 in additional fuel expense that wasn't in your budget.

If you don't have a fuel surcharge mechanism built into your rate structure, you're absorbing this cost entirely. That's a margin hit you can't afford when labor costs are also rising.

What Technology Trends Are Accelerating?

COVID compressed years of technology adoption into months. Three trends that were nascent in 2019 are now mainstream:

Virtual surveys. What started as a safety necessity is now a customer preference. Many customers actually prefer a 15-minute video call over scheduling an in-home visit. Companies offering both options are closing more estimates.

Digital documentation. Paper bills of lading, printed estimates, wet-ink signatures — they feel anachronistic in 2021. Electronic bills of lading and digital signatures are faster for the crew, preferred by the customer, and easier to store and retrieve.

Customer self-service. Customers want to book online, track their move status, access documents, and pay their balance without calling your office. The client portal has gone from "nice to have" to the baseline expectation.

Moving companies that adopted these tools early are now seeing measurable advantages in close rates, customer satisfaction scores, and operational efficiency. Those still running on paper and phone calls are watching their market position erode.

What Should You Be Doing Right Now?

Based on everything the 2021 data is showing:

  1. Raise your prices. Your costs are up across the board — labor, fuel, insurance, materials. If you haven't adjusted pricing, you're working harder for less money.
  2. Invest in retention. It's cheaper to keep a good mover than to find a new one. Offer competitive pay, treat your crews well, and reduce friction in their daily workflow.
  3. Speed up your sales process. Customers in a hot housing market don't have time to wait. Online quotes and same-day estimates are competitive necessities.
  4. Track your numbers obsessively. Revenue is up for most movers in 2021, but so are costs. Don't confuse busy with profitable. Use your reporting tools to monitor margins at the job level, not just the top line.

This is a year of both opportunity and risk. The demand is there. The question is whether your operation can capture it profitably.


Want to make sure your systems are keeping up with 2021 demand? Schedule a demo to see how the right platform helps you scale without the chaos.

SL

Susan LeGrice

Content Strategist at Elromco

Susan brings 10+ years of experience in the moving industry, helping companies optimize operations through technology.

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