Re-imagining Relocation in the Now Normal

In December of 2024, Dwellworks proudly acquired CORT's Destination Services business, expanding our commitment to delivering industry-leading relocation solutions. Read the full press release here. To ensure a seamless transition, we are making the materials previously available on the CORT Destination Services website accessible as valuable resources for our clients and partners.

For more information on Dwellworks Destination Services, please click here.

Navigating the Challenges of Global Mobility in the “Now Normal”

It is difficult to talk about the challenges wrought on global business by COVID-19 without resorting to clichés. Broad pronouncements about massive changes and predictions about the so-called "new normal" have been ubiquitous. Yet, our intuition tells us that many of these predictions are little more than guesses.

From Manhattan CEOs to Mumbai couriers, we are all standing on completely new ground, searching the horizon for clues that might help us get our bearings.

But who is qualified to claim the title of "expert guide" in a land that none of us have visited? Instead of throwing another prediction into the air and hoping it will stick, let's pause and take a look at the issues that employees, corporations, and relocation management companies are facing in our current, very real “now normal.”

What are the Challenges of the “Now Normal?”

Who would have predicted that COVID would lead to a shipping crisis, a scorching U.S. real estate market, and even supply chain disruptions affecting everyday goods? The mobility landscape is no exception. The relocation industry has faced major shifts due to supply chain challenges, rising costs, and shifting workforce trends.

Moving Household Goods (HHG)

Two major factors are causing significant delays in the delivery of household goods in the post-pandemic era. First, the global shipping crisis has led to container shortages.

Companies that depend on a high volume of imports (such as major e-commerce and home improvement retailers) get precedence on ships. Even after a shipment date is set, individual containers for relocations can be bumped from the manifest, leading to further delays. Assignees moving internationally can expect to be without their household goods for several weeks, if not months.

Additionally, the cost of international shipping has skyrocketed, making relocation significantly more expensive. These delays and rising costs have made traditional moving methods increasingly difficult to navigate.

The U.S. moving industry was already facing a shortage of qualified drivers before the pandemic hit. The pandemic exacerbated the problem, as many truckers used it as an opportunity to retire or switch careers. The shortage of drivers means that even when a shipment arrives at port, it may remain there for quite some time until a crew is available to transport it to its destination.

Temporary Housing

Temporary housing has long been a go-to solution for employees on short-term assignments or those awaiting the arrival of their household goods. However, the pandemic disrupted this market in significant ways.

During the early days of COVID-19, demand for temporary housing plummeted, prompting many short-term housing providers to reduce their apartment inventory. As business remained slow and uncertainty persisted, providers were hesitant to take on new leases. Now, as the relocation market rebounds, there are not enough temporary apartments available to meet demand.

This shortage has created a more competitive rental landscape, making it difficult for relocation providers to source short-term housing solutions. With lower vacancy rates and increased competition for available units, costs have also risen. In a tight rental market, higher demand means higher rent prices, which in turn raises the cost of temporary housing stays.

The current environment has also impacted household furnishing options. The supply chain challenges that have hit the furniture retail business mean that consumers now face extended wait times for new furniture. Shopping for furniture can be a frustrating and time-consuming process, often requiring months of waiting for items to arrive.

Adapting to a Changing Landscape

One key takeaway from the pandemic is that international assignments and domestic relocations can be disrupted unexpectedly by circumstances beyond our control. The rising costs and logistical challenges of shipping household goods, securing temporary housing, and furnishing homes mean that companies and employees need to explore alternative relocation strategies.

The relocation industry will continue to evolve, and these challenges are not necessarily permanent. The shipping and temporary housing sectors will stabilize over time, but for now, these issues represent the “now normal.” Companies, mobility professionals, and relocating employees must remain flexible and explore new solutions to navigate these unprecedented challenges effectively.

By understanding and adapting to these ongoing changes, relocation professionals can continue to support a mobile workforce while mitigating the uncertainties that have reshaped the industry in recent years.

About Dwellworks 

Dwellworks is the world’s largest provider of destination-related services and temporary living solutions for the globally mobile workforce and business travelers. We provide business-to-business solutions for Fortune 1000 and emerging companies directly and through their relocation management partners. Whether a company needs to relocate its employees across the country or around the world, we provide a range of support services to help employees and their families transition successfully from their home location to a new destination.   

Dwellworks supports the diversity of our clients’ globally mobile workforce with personalized destination solutions in 16 countries, covering hundreds of major relocation markets. Dwellworks Living, our global furnished temporary living solution, offers corporate housing accommodations for relocation and business travel customers in 125 countries. Our full-service real estate brokerage, Station Cities, supports home rentals, sales, and purchases in the Tri-State New York area and Chicago. Visit our homepage, learn about our services, and read our blogs to learn how we can help with your relocation and business travel needs.