In the latter part of 2011 there were fewer relocation opportunities because homeowners are trapped in their homes. Mortgages being in negative equity for many homeowners mean that, even with relocation offered, homeowners are less likely to choose to move. Accepting a move as part of an individual’s job is also likely to be rejected due to lack of assistance.
If a company is unwilling to offer assistance to make the move happen, homeowners are unable to afford it. They cannot support two homes, even if it means a slight increase in salary.
There is also the issue of losing a job that requires relocation.
The labor markets are difficult as is. With unemployment still high in many areas, the only choice for some homeowners may be to move. A family cannot survive without income and it could create a worse situation if the employee does not move. There are hard decisions to be made when companies need to uproot employees.
When companies struggle in the market, it usually means they are unable to provide assistance. Furthermore, there are issues with housing prices being upside down. Companies cannot help as much when housing values are not there to support a sale. Companies are also less generous with regards to a loss on a sale. It has changed how companies and workers feel with regards to moving for their job and will probably mean that fewer employees will take offers to move until the housing market and economy is stabilized.
Jon Huser
