The ballooning cost of living is now at a 10-year high. Numbers from experts indicate that housing costs are leading the charge, pushing up inflation to 8 percent. Prospective home buyers are struggling to match the astronomical house prices, and the inflationary pressures are pricing them out of the market. But can you still get that dream home you’ve always longed for or move into a new home? Absolutely! Yet, you’ll need to understand the relationship between inflation, housing costs, and moving fees. Let’s take a closer look at how these are interconnected.
How Inflation Affects Home Buyers
You may have already felt the impact of inflation but are still not sure what exactly happens to home prices during an inflation period. Well, inflation diminishes the purchasing power of your money – you pay more for fewer services or goods than before. Generally, inflation drives up the price of each product in the market.
As the prices of lumber and other building materials soar, so do the cost of building new homes. In turn, prospective home buyers have to pay more for a down payment and put up with costlier mortgage terms.
Homebuilders opt to put their projects on hold until they can better predict material costs and prices. That ramps up the demand for new homes, driving up the current home prices.
Inflation and Moving Costs
As inflation persists, price surges steadily make their way through almost every raw material’s supply chain. These costs eventually creep into the moving industry.
Moving can be expensive even during the best of times. In addition to the increasing home prices, inflation also affects other areas of the moving process. The costs of packing supplies such as cartons and custom crating go up, meaning you have to go deeper into your pockets for the preparation. If you have fragile and uniquely shaped items, you could be forced to pay more for custom crating.
As labor costs go up, so do the costs for hiring moving companies. The worst part? These services are becoming increasingly harder to find due to labor shortages and the decreased availability of moving trucks which are crucial for the moving industry.
Due to these labor shortages, selecting a reputable moving company is essential. Choosing a moving company that is affiliated with a national van line, such as Allied Van Lines, can provide more stability and ensure your move goes smoothly. If you plan on investing in a new home, consider these factors and choose a reputable mover.