Navigating Challenges and Opportunities in a Changing Housing Market

According to Redfin, as of November 2024, the housing market saw a surge in unsold homes, with active listings up 12.1% from the previous year. More than half (54.6%) of these properties sat untouched for over 60 days, the highest rate in five years. High mortgage rates and steep home prices continue to push homeownership out of reach for many buyers, leaving overpriced or fixer-upper homes stagnant while well-priced properties can still sell within days.

Market conditions vary by region. In states like Rhode Island and Wisconsin, only about 38% of homes remain unsold long-term, while cities like Miami and Austin are seeing nearly 63% of listings linger on the market.

While more homes on the market could be considered a positive development, affordability continues to present major obstacles for interested buyers.

The Impact: Relocating employees may continue to face challenges in selling their current homes or in finding suitable homes to purchase at destination, impacting the overall time taken and the quality of moves. However, the higher supply level may offer buyers more room to negotiate in some markets. Mobility leaders should evaluate their policies and approaches to benefit packages (assuming employees are taking all necessary steps to facilitate a quick sale). Some employers may prefer to offer more options such as additional time to relocate, financial support for loss on sale or home sale incentives. Others may opt to avoid the complexities and costs associated with longer sale timelines and provide alternatives to home sale benefits.

Storm Averted: Port Strike Prevented with New Agreement

The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance reached a six-year contract agreement on January 8, 2025, just before the current contract was set to expire. AP News reports that this deal stopped a potential strike that could have caused serious delays at major U.S. ports. The agreement includes wage increases and addresses automation concerns, as workers fear job losses.

A strike would have disrupted supply chains, slowing goods through the critical East and Gulf Coast ports. These ports handle a large share of U.S. imports. In October 2024, the ILA’s three-day strike caused shipping delays and bottlenecks, highlighting their importance in keeping commerce moving.

The new agreement offers relief to businesses relying on smooth port operations. However, automation remains a concern, with machines continuing to threaten job security.

The Impact: A port shutdown would significantly slow the shipment of household goods, vehicles, and other items needed for employee relocations. Mobility leaders need to monitor changes in technology and future labor negotiations. While this deal provides stability for now, businesses should prepare and remain attentive to any challenges that could come from future disputes at the ports, with an understanding that shipping is an unpredictable industry.

Global Mobility Radar

CapRelo’s Mobility Radar provides valuable insights into trends worth monitoring. This month, we are tracking important global mobility updates from Romania, Bulgaria, Italy, and Norway.

• As of January 17, Romania and Bulgaria officially joined the EU’s Schengen area. The expansion follows Austria’s recent withdrawal of its veto and marks the full integration of both countries into Europe’s largest free-movement zone, enabling open travel, work, and trade for over 425 million EU citizens and visitors.
• With housing affordability remaining a challenge across developed nations, Group of Seven (G7) housing ministers met in November in Italy to discuss recommendations to address the issue. Proposals include low-cost financing for rental projects, investment in preserving affordable housing, rental assistance for low-income households, support for non-profit housing initiatives, and regulatory reforms to accelerate construction.
• Norway’s NuProShip project has entered its second phase in developing nuclear propulsion as a viable zero-emission solution for sea shipping. The initiative is supported by $1 million in funding and focuses on Generation IV reactors. The study is set to run through 2025 and aims to pave the way for prototype development.