expand your horizons make the right connections homeowner to renter challenges

EXPAND YOUR HORIZONSMake the Right Connections

Homeowner to Renter Challenges

Homeowner to Renter DefinedTransferee Choice:• Loss of equity• Insufficient equity• Home not selling• Extended selling time• Uncertainty• Credit issues

Corporation supporting destination rental:

• Moving to High Cost Area• Anticipated additional

move w/in 2 years• Employee moving from

depressed market• Critical talent

ERC Survey Results – Reluctance to Relocate

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011

Depressed Housing Market

Origin Home in Negative Equity Situation

High Housing Cost Areas

Source - ERC 2010 Transfer Volume & Cost Survey and ERC 2011 Transfer Volume & Cost Survey

Assignments 2007-2011

Source – Wm French Buyers Real Estate Services, Inc.

2007-2011 Buyer Assignments Who Rented

Source – Wm French Buyers Real Estate Services, Inc.

Homeowners Choosing Not to Purchase at Destination

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 2010 2011

Homeowners Choosing Not to Purchase at Destination

Source - Altair Client Data

ERC Survey Results

14%

53%

31%2%

Homeowners Choosing to Rent in the New Location*

A significant increase

Somewhat of an increase

No discernable change

Don't know

*ERC 2010 U.S. Transfer Volume & Cost Survey

Buyer to Renter Ratio

Source – Wm French Buyers Real Estate Services, Inc.

ERC Results – Homeowners vs. Renters

38%

62%

Homeowners

Renters

*ERC 2011 Transfer Volume & Cost Survey

Homeowner to Renter Impacts

• Corporate

• Transferee

• Service Provider

Corporate Impacts

• Declined offers for relocation• Increased recruiting efforts• Increased costs

– Loss on sale– Property Management– Dual Housing

• Decreased costs– No Home Sale needed

• Increased exceptions requests– Storage– Multiple moves– Temp Housing

• Distracted employees• Alternative policy type needed• Potential management fee

impacts

Transferee & Family Impacts

• Refusal to move or move uncertainty• Extended family separation

– Difficult decision process• Not selling departure home, dual housing• Need more benefit $$$• Lower Rental Supply (single family homes)

Service Provider Impacts

• Change in move type– Potential pricing

changes– Change in counseling

process• Reduced RMC revenue• Supplier fees impacts

• Higher level rental assistance need– Lease negotiation– Destination services– Fee increases

• Reduced broker/agent revenue

Rental Market Challenges

• Foreclosure Impact

• Decreased Rental Inventory (single family homes)

– Non professional homeowner landlord challenges

– Increased emotional connection

• Landlord driven market

– Increased pricing

– Decreased negotiation

• Increased rental requests

• Property search issues (MLS, Craig’s List)

• I

Policy Solutions Today

• Loss on sale• Short Sale counseling• Dual housing• Extended home

purchase• Extended storage

• Property Management

• Rental Subsidy• Increased

destination/rental assistance

• Incent to rent

Future Impacts

• Real estate impacts

• Future solutions

• Alternative move types

• “Now am I a renter or homeowner?”