Supporting Relocating Employees with Home Buying: What Mobility Managers Need to Know*

In shifting real estate markets, timing plays a critical role in securing the best home buying outcome for both employers and relocating employees. With home values continuing to rise, delaying a purchase could potentially mean paying significantly more for the same property down the line. While some employees may hope for lower interest rates, waiting often leads to higher overall costs due to home appreciation outpacing potential rate reductions.

For global mobility managers, it is important to educate your employees on the benefits of early home purchases to help your organization reduce relocation expenses and minimize temporary housing costs, while enhancing the overall experience for relocating employees. By acting now, you can optimize your relocation budget and ensure your employees transition smoothly into their new location.

*Information in this article is provided by Sirva Mortgage, a proud member of the Sirva Family of products.

Understanding Home Appreciation and Its Impact on Mobility Costs

Home appreciation has been a defining trend in recent years. In 2024 alone, median home prices experienced a 5% year-over-year increase, with some regions experiencing even sharper spikes. Key drivers of this growth include:

• Limited inventory: A shortage of available homes increases competition and drives prices higher.
• Population growth: Areas like Texas, Florida, and Arizona are seeing significant real estate demand due to rapid population increases.
• Rising construction costs: Higher material and labor costs make new homes more expensive to build, further inflating overall housing prices.

For corporate relocation programs, this trend presents both a challenge and an opportunity. Encouraging relocating employees to purchase sooner can help them secure a home at today’s value, protecting them from further price hikes while building equity. Delaying, on the other hand, could result in higher home purchase costs, increasing both employee financial strain and overall relocation expenditures.

The Risk of Waiting for Lower Interest Rates

Many potential homebuyers hesitate to purchase, hoping for a drop in interest rates. However, this strategy can be risky, as rising home prices can quickly outweigh any potential savings gained from lower rates. Consider this scenario: a home priced at $300,000 today appreciates to $330,000 next year (a 10% increase). Even if interest rates drop by 0.5%, the higher purchase price results in a larger loan amount and higher monthly payments.

Additionally, as prices rise, buyers risk being outbid in competitive markets or priced out of desirable neighborhoods, making their relocation more stressful. Acting now allows employees to lock in today’s prices and benefit from future appreciation, securing a stronger financial position and building equity faster.

How Pre-Approvals Help Employees Adapt to Market Conditions

Mobility managers should be aware that, for relocating employees who are navigating home purchases during a relocation, getting mortgage pre-approvals provide essential flexibility and confidence. A pre-approval offers:

• A clear budget based on current financial standing.
• Faster decision-making in competitive markets.
• Adaptability—if rates drop, loan options can be adjusted accordingly.

A pre-approval process that is designed specifically for relocating employees can provide them with a competitive advantage in fast-moving housing markets, including: 

• Rate lock options – securing a favorable rate once a home is selected, protecting against market fluctuations.
• Reassessment as needed – if rates drop, being able to explore refinancing and alternative loan structures to maximize savings.
• Expert guidance –dedicated mortgage consultants that can assist employees every step of the way and ensure that your employees are well-positioned to make informed, strategic home-buying decisions.

Expert Tips for Corporate Mobility Leaders

To optimize relocation programs and support employees in securing affordable housing, companies should:

• Work with market experts – Leverage professionals who understand both local and national trends to guide employees toward smart purchasing decisions. The deep market expertise of an experienced mortgage company like Sirva Mortgage ensures relocating talent makes well-informed choices.
• Consider flexible financing solutions – Different loan structures can provide significant cost savings. Employees should explore:

• Adjustable-rate mortgages (ARMs) – Lower initial rates, ideal for short-term assignments.
• Fixed-rate mortgages – Predictable payments for employees planning long-term stays.

• Encourage early action – Delays in home purchases can lead to higher housing costs, increased temporary housing expenses, and unnecessary financial strain on employees. A proactive approach benefits both your employees and your budget.

Conclusion

By integrating strategic homebuying advice into your relocation policies, you can enhance employee satisfaction, improve retention, and achieve cost-efficient mobility outcomes.

Your relocation program deserves a partner who brings more than trucks. It deserves a partner who brings vision, experience, and a commitment to excellence.

Contact us today to explore how Allied Van Lines can support your workforce mobility strategy.

References/Disclaimers:

*Information provided by Sirva Mortgage, a proud member of the Sirva Family of products.

Sirva Mortgage is an equal opportunity lender engaged in the business of originating residential mortgage loans. We are licensed or authorized to conduct mortgage loan origination in all 50 states plus the District of Columbia. Sirva Mortgage is not a depository institution and does not act or represent itself as a full-service bank. Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans. Various state laws and regulations and our license type(s) in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships disclosures please visit https://mortgage.sirva.com/about/about-sirva-mortgage. Please see the complete required license disclosure below. Call 800-531-3837 for more information.

Sirva Mortgage, Inc. NMLS ID #2240, for licensing information, go to: www.nmlsconsumeraccess.org. Main Office Address is 6000 Lombardo Center, Suite 500, Seven Hills, OH 44131; Telephone: 1-800-531-3837. We are licensed by/as (among others): Arizona Licensed Mortgage Banker, License #0901430; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, License #4130944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee #MB.0004037 - Illinois Department of Financial and Professional Regulation (IDFPR), Division of Banking, Mortgage Banking Section, 555 West Monroe Street, Suite 500, Chicago, IL, 60661, (312) 793-7090; Kansas Mortgage Company License #MC.0025314; Massachusetts Mortgage Lender License #ML2240; Nevada Licensed Mortgage Banker License #1043; Licensed by the N.J. Department of Banking and Insurance; Licensed Mortgage Banker – NYS Banking Department; Oregon Mortgage Lending License #ML-186; Rhode Island Licensed Lender; Texas Mortgage Banker Registration #2240; WA Consumer Loan Company License #CL-2240.

This is not an offer of credit. This is not an offer to enter into an interest rate lock-in agreement nor is this notice of loan approval. Mortgage approvals are rendered based on individual credit qualifications.