It’s no secret that the current rate of unemployment has had a negative effect on the real estate market.  Many experts believe that as employment opportunities increase, this will drive a turnaround in the real estate market.  Some interesting new data shows that the current state of real estate may actually be holding back some segments of employment. 

It wasn’t too long ago that companies had large relocation budgets to move potential employees all around the country.  Companies would pay for relocation costs and sometime offset any losses that were suffered as result of you have to sell your current house.  Sufficed to say, those days are long gone.  Demand for executive and managerial level talent does seem to be on the rise, but companies do not seeming willing to incur large relocation costs.  A combination of both a buyer’s market for both real estate and talent have pushed the percentage of managers and executives relocating for new jobs to 6.9% in the third quarter this year, down from 13.4% in the same period in 2009.  The number one reason cited for the lack of relocation is the inability of the job seeker to sell their current home.  Many job seekers are experiencing frustration because of their lack of options.

One option that we have recommended to many of our clients in similar situations is to list their house for lease as well as for sale.  Leasing their current house for a year or two would allow them to cover their costs on their current house as well as give them the opportunity to relocate for potentially a better employment opportunity.  It would also give them the option to put their house back on the market in the future when market conditions and prices increase.  Upper End Properties has leasing and property management experts who have been able to help many clients find successful solutions to their relocation situations.  Give us a call at 314.558.7555  or visit www.upperendproperties.com to discuss.

Cory Spielberg

Bookmark and Share