Economic Crisis and Its Impact on the Moving Industry in Canada – From A Perspective of Déménagement Total
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.
During the pandemic, the housing market went wild. People all over Canada went looking for new homes. Lockdowns and work-from-home orders made people desperate for a change of scenery. During the peak of the pandemic, Canada experienced some of the lowest interest rates in decades, allowing thousands of potential homeowners to realize their dreams of owning a home. It also allowed existing homeowners to change locations, keeping the moving industry in Canada bustling with business. However, like everything in life, things change. The market needed to correct itself, and that’s exactly what it did.
This was the after-effect – Home prices rose rapidly to the point where potential homebuyers were priced out of the market and were forced to delay their plans to purchase a new home. This created a decrease in demand for moving services, as people delay their plans to move until they can afford a home. Because of high-interest rates, the real-estate crisis in Canada is increasing, causing even lower demand for housing, continuing to impact the moving industry negatively.
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 moving industry in Canada.
- 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 in Canada.
- Budgeting restrictions also translate to less marketing of your business which leads to smaller companies in the moving industry in Canada 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 moving industry in Canada.
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.
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 economic crisis in Canada can have a significant impact on the moving industry in Canada, but at Déménagement Total, we offer affordable options for moving locally or long-distance and can also provide high-quality storage options for reasonable prices to help our customers, no matter the situation they are in.
Other ways Déménagement Total is a stand-out in the moving industry in Canada:
- We provide exceptional customer service: Even during the economic crisis in Canada, we always offer friendly and helpful customer service to our clients throughout the moving process, from the initial inquiry to post-move follow-ups. We understand the difficulties people are going through right now, and we offer creative solutions to any moving issue.
- We employ only the most experienced movers: Even with the added costs associated with the housing crisis, Déménagement Total is committed to employing our expert movers. Our employees are like family, and we will continue to do whatever possible to keep them employed during this trying time, and thus provide our customers with exceptional quality services.
- We offer competitive pricing: With high-interest rates, we know that price is a major consideration for homeowners when choosing a moving company, so it’s important for us to offer competitive pricing without sacrificing quality.
- We ensure timely and reliable service no matter what: Déménagement Total is always dependable regardless of the situation, especially during a real-estate crisis in Canada. We arrive on time and keep our clients informed throughout the moving process every step of the way. When you invest your money in us, you know you will always get exactly what you pay for.
- We exclusively use high-quality equipment: Even as things have gotten tough in the moving industry in Canada, we have not sacrificed the quality of our equipment. Using the best reliable equipment ensures that all moves are completed efficiently and safely.
- We offer additional services: At Déménagement Total, we offer additional services such as packing, unpacking, and storage solutions to give our clients a more comprehensive moving experience. Life is stressful enough during the economic crisis in Canada, so we want to do whatever we can to minimize stress during the moving process.
- We prioritize safety: Even with the hardship bestowed upon the moving industry in Canada, we have ensured that safety is always a top priority during the moving process. This includes ensuring that our employees are all expertly trained, our equipment is maintained and up-to-date, and safety protocols are followed meticulously.
- We provide personalized services: When our customers call us, we offer personalized services to meet their unique needs and requirements, such as custom packing and handling of delicate or valuable items. We never offer blanket solutions. Each customer is special, and we treat each of them that way.
By implementing these strategies during an economic crisis in Canada, Déménagement Total has been able to stand out from our competition in the moving industry in Canada. We have put in the effort to build a loyal customer base while providing exceptional quality services for affordable rates to new customers nationwide.
Long-Term Impact of the Economic Crisis in Canada
An economic housing crisis can have a number of long-term consequences on the moving industry in Canada but can also impact both individuals and society as a whole.
Here are some of the potential impacts we could see as a cause of the real-estate crisis in Canada:
- Homelessness and housing insecurity: One of the most immediate and devastating consequences of an economic crisis in Canada is increased homelessness and housing insecurity. People who lose their homes or are unable to find affordable housing may be forced to live in shelters or on the streets, which can lead to a range of physical and mental health problems. In Canada, homelessness and mental health issues are rising dramatically, which could, in turn, cause a loss of jobs in the moving industry in Canada. Which, essentially, is a vicious circle of cause and effect.
- Economic inequality: High-interest rates and the real-estate crisis in Canada can exacerbate existing economic inequalities, as people with fewer resources are more likely to be impacted by rising housing costs and high-interest rates. This can lead to a widening wealth gap, which can have long-term consequences for social mobility and economic stability, thus impacting the housing industry in Canada.
- Health problems: Living in substandard or overcrowded housing can lead to a range of health problems, from respiratory issues to mental health problems. In addition, homelessness and housing insecurity can also lead to health problems due to a lack of access to basic needs such as food, water, and medical care.
- Reduced economic growth: The real-estate crisis in Canada and the high-interest rates has a negative impact on the economy as a whole, as they can reduce consumer spending and limit job growth. In addition, businesses may be less likely to invest in areas with high housing costs, which can lead to reduced economic growth over the long term.
- Social unrest: Housing insecurity and homelessness can lead to social unrest and political instability as people become increasingly frustrated with their living situations and the government’s perceived lack of action to address the real-estate crisis in Canada.
The long-term consequences of the economic crisis in Canada can be far-reaching and multifaceted, impacting individuals, communities, and our economy as a whole. It is, therefore, essential to address the root causes of the real-estate crises in Canada and work to ensure that everyone has access to safe, affordable housing.
Ongoing Impact on the Moving Industry in Canada
The moving industry in Canada, like many other industries, can be significantly affected by the economic crisis and high-interest rates. During a recession or economic downturn, like we 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.
Generally, the moving industry can also be somewhat resilient in an economic crisis with high-interest rates, as people may still need to move for various reasons, such as job changes, family needs, or personal circumstances.
In fact, some segments of the moving industry, such as storage and logistics, may actually see an increase in demand during an economic crisis as people downsize their homes or businesses consolidate their operations.
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 a number of 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 in Canada, like many other industries, will experience some level of disruption during the economic crisis in Canada.
Real-Estate Crisis in Canada – Preventative Measures
Preventing a real-estate crisis in Canada requires a multi-faceted approach that addresses both the supply and demand sides of the housing market. In a perfect world, here are some strategies that can help prevent a housing crisis:
- Increase the supply of affordable housing: One of the main causes of our current housing crisis is a lack of affordable housing. To combat this, governments and policymakers should work to increase the supply of affordable housing through a range of measures, such as building new affordable housing units, providing incentives for developers to build affordable housing, and preserving existing affordable housing for all. The Federal Government of Canada is currently offering initiatives to assist with affordable housing, such as this one-time top-up to the Canada Housing Benefit.
- Implement rent control or stabilization measures: Rent control or stabilization measures can help prevent sharp increases in rent prices, which can make housing unaffordable for many people. These measures can include limiting rent increases to a certain percentage per year or tying rent increases to inflation.
- Provide financial assistance to low-income households: Low-income households are often the most vulnerable to the real-estate crisis in Canada. Providing financial assistance in the form of housing vouchers, rental subsidies, or down payment assistance can help these households find and afford stable housing.
- Encourage mixed-income developments: Mixed-income developments that include both affordable and market-rate housing can help prevent the concentration of poverty in certain neighbourhoods and promote economic diversity. This option can be life-changing during an economic crisis in Canada.
- Support community land trusts: Community land trusts can help prevent gentrification and displacement by allowing communities to own and manage land and housing in their neighbourhood collectively. There are several initiatives promoting community land ownership across Canada. To learn more about community land in Canada, click here.
- Address systemic issues: Ultimately, preventing a real-estate crisis in Canada requires addressing systemic issues such as income inequality, racial discrimination, and inadequate public infrastructure. By addressing these issues, we can create a more equitable and sustainable housing market that benefits everyone in Canada.
Déménagement Total – Still #1 in the Moving Industry in Canada
During the real-estate crisis in Canada, the housing market can be a difficult and uncertain place for Canadians. However, with the help of moving companies like Déménagement Total, navigating the complexities of an economic Crisis in Canada can be made easier.
By providing essential services like packing, storage, and moving, Déménagement Total has been a crucial partner for Canadians during these uncertain times.
By working to make the moving process as seamless and stress-free as possible, Déménagement Total has enabled homeowners across Canada to focus on finding the right home for their needs and budget without having to worry about the logistics of moving.
With our dedicated commitment to providing top-quality service and support, we are helping to ensure that Canadians can weather the current real-estate crisis in Canada with confidence and peace of mind. Call us today to learn more about how we can help you!