Canada is in a housing economic crisis. The moving industry in Canada may be in trouble.
The average household in Canada needs over 60% of their income to cover costs associated with owning a home. According to the Royal Bank of Canada, it’s the worst level on record. The numbers get even worse if you live in Vancouver or Toronto, where it costs over 85% of your income to keep a roof over your head. The sad reality is that in today’s economic climate, most Canadians cannot afford to own a home, and that creates a significant impact on the moving industry in Canada.
During the pandemic, house prices soared to new heights, and then a series of interest rate hikes dampened the fast-rising inflation rate making things worse than ever for potential homeowners looking for a mortgage.
The good news is – things could change. Home prices seem to be dropping since interest rates began their rise. And since the pandemic has slowed, household income leaves are on the rise, giving potential homebuyers a fighting chance. However, RBC expects say “it will likely take years to fully reverse the tremendous deterioration that took place since 2021.” The ripple effect this will have on the entire moving industry is a big one. Yet, companies like Déménagement Total have found ways to weather the storm.
How the Economic Crisis Affects the Moving Industry in Canada
The economic housing crisis has had a significant impact on the moving industry in Canada. When people face challenges with housing affordability, it can drastically impact their ability to move to a new home, which can lead to a reduction in demand for moving services.
The decrease in the number of home sales leads to a reduction in demand for moving services. People may be unable to sell their homes and choose to delay their move until the housing market improves and high-interest rates drop. Another issue is that those that are able to move are finding other means to transport their belongings as hiring a moving company is not a luxury they can afford during a real-estate crisis in Canada.
The economic crisis in Canada is causing the following issues for the moving industry in Canada:
- Moving companies are being forced to let go of experienced movers due to financial hardships due to the real-estate crisis in Canada.
- Less skilled workers mean less productivity which translates to less work for moving companies, which is pushing some of these companies out of the industry.
- Struggling companies may be forced to hire unskilled workers to save costs but in turn, provide less quality moving services to their customers, which is just bad business.
- Less work also means less available funds for new trucks and equipment, which is also negatively impacting the moving industry.
- Budgeting restrictions also translate to less marketing of your business which leads to smaller companies to permanently shut their doors or risk bankruptcy.
There is a lot of doom and gloom in the moving industry in Canada. Although, there is a silver lining. A real-estate crisis in Canada can also create opportunities for the movers. For example, in areas with a shortage of affordable housing, people may be forced to move to different areas, which can lead to an increase in demand for long-distance moving services. Additionally, people who are unable to afford a new home may choose to downsize, leading to an increase in demand for storage and moving services.
How Is Déménagement Total Meeting the Needs of Customers During the Economic Crisis in Canada?
Companies like Déménagement Total have found innovative ways to accommodate customers during an economic downturn. The company offers affordable options for moving locally or long-distance and can also provide high-quality storage options for reasonable prices to help its customers, no matter the situation they are in.
Other ways Déménagement Total is a stand-out in the moving industry in Canada by:
- Providing exceptional customer service
- Employing only the most experienced movers
- Offering competitive pricing
- Ensuring timely and reliable service
- Exclusively using high-quality equipment
- Offering additional services
- Prioritizing safety
- Providing personalized services
By implementing these strategies during an economic crisis in Canada, Déménagement Total has been able to stand out from its competition. It has put in the effort to build a loyal customer base while providing exceptional quality services for affordable rates to new customers nationwide.
Ongoing Impact on the Moving Industry in Canada
The moving industry, like many other industries, can be significantly affected by the economic crisis and high-interest rates. During a recession or economic downturn, like the moving companies are in currently, people are becoming less likely to move due to financial constraints caused by the pandemic. This can lead to a decline in demand for moving services. In addition, commercial businesses may be less likely to invest in new facilities or relocate their operations, which can also impact the demand for commercial moving services.
Some moving companies must lower their standards just to make ends meet. Selling off quality equipment or laying off valuable employees has become a way to meet rising costs and less work. Thankfully, there are moving companies like Déménagement Total that have refused to limit quality and performance during the real-estate crisis in Canada. Déménagement Total offers customers several custom moving options, including logistics and storage, to help assist those facing hardships during the economic crisis in Canada.
The impact of an economic crisis on the moving industry in Canada can vary depending on several factors, such as the severity and duration of the real-estate crisis in Canada, the specific segments of the industry, and the geographic regions affected. However, it is likely that the moving industry, like many other industries, will experience some level of disruption during the economic crisis in Canada.
