Mobility - February 2021 - 34

Will Relocations-and the Need for
Housing-Return?

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34

" The biggest concerns are the ramifications of a
work-from-anywhere culture becoming normalized, " says Portale. " When does it establish tax
nexus for the corporation, what new challenges
does it create for corporations relative to tracking
and compliance, and how does this impact mobility policies? " -all of which have a direct downstream effect on housing.
It may take time for all of the implications of
this emerging " next normal " to be understood,
but it's clear the phenomenon of employees self-‚Äč
selecting for relocation-a trend that was already
happening but dramatically accelerated by stayat-home orders-will change the type of services
relocation managers provide and how and to
whom they provide them.
In the short term, the consensus of top relocation housing experts points to a slow return
of business at some point later this year from
an estimated decline of 30% to 40% in relocations in 2020.
" We're being told by multiple clients that
Q1, Q2, Q3 of [2021] is going to be a lot of
the same, " says James R. Gargano, SCRP, RAC
member and president and managing partner
of appraisal firm Bomba Gargano Valuation,
based in the Chicago suburb of Naperville,
Illinois. " Maybe Q4-which is ironic because
that's usually the slowest quarter-we can start
seeing some change, but a lot of it's up in the air
because we remain in uncharted waters. "
Gargano serves more than 50 relocation
management clients, many of them for more than
two decades. But the usually reliable relocation
business at BG Valuation was down about 35%
for the year and 60% over the last three quarters of
2020-offset partially by a 30% increase in mortgage- and litigation-related work.
The efficacy of vaccines, their potential impact
on consumer confidence and economic recovery,
and the long-term impact of companies discovering how productive their employees can be working from home remain to be seen. Still, relocation

The efficacy of vaccines,
their potential impact on
consumer confidence
and economic recovery,
and the long-term
impact of companies
discovering how
productive their
employees can be
working from home
remain to be seen. Still,
relocation pros agree
2021 will see some level
of bounce back.

professionals agree 2021 will see some level of
bounce back.
" We know relocation will continue to be
a vital tool for acquisition and retention of
key talent, and when it comes to key strategic
engagements-certainly launching or expanding
a business unit-interpersonal engagement is
necessary and can be hard to replicate virtually, "
says Cathleen Podell, a Chicago-based regional
vice president for Wells Fargo Home Mortgage.
" Leaders largely recognize that, so we fully
expect companies will ramp relocation activities
back up but in a very strategic way. "

Tough Sledding in the Housing Market
When they do, they'll find challenging conditions on the housing front. Real estate has
been on a wild ride since before the pandemic
began, with homesales hitting a 14-year high
in October 2020. With mortgage interest rates
continuing to hover near historical lows and a
persistent supply-demand imbalance, experts say


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Mobility - February 2021

Table of Contents for the Digital Edition of Mobility - February 2021

Mobility - February 2021 - Cover1
Mobility - February 2021 - Cover2
Mobility - February 2021 - 1
Mobility - February 2021 - 2
Mobility - February 2021 - 3
Mobility - February 2021 - 4
Mobility - February 2021 - 5
Mobility - February 2021 - 6
Mobility - February 2021 - 7
Mobility - February 2021 - 8
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Mobility - February 2021 - Cover3
Mobility - February 2021 - Cover4
https://www.nxtbook.com/ygsreprints/WERC/mobility-april-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility-march-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility-february-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility_122020
https://www.nxtbook.com/ygsreprints/WERC/mobility_112020
https://www.nxtbook.com/ygsreprints/WERC/mobility_102020
https://www.nxtbook.com/ygsreprints/WERC/mobility_092020
https://www.nxtbook.com/ygsreprints/WERC/mobility_082020
https://www.nxtbook.com/ygsreprints/WERC/mobility_072020
https://www.nxtbook.com/ygsreprints/WERC/mobility_062020
https://www.nxtbook.com/ygsreprints/WERC/mobility_052020
https://www.nxtbook.com/ygsreprints/WERC/mobility_042020
https://www.nxtbook.com/ygsreprints/WERC/mobility_032020
https://www.nxtbook.com/ygsreprints/WERC/mobility_022020
https://www.nxtbook.com/ygsreprints/WERC/mobility_012020
https://www.nxtbook.com/ygsreprints/WERC/mobility_122019
https://www.nxtbook.com/ygsreprints/WERC/mobility_112019
https://www.nxtbook.com/ygsreprints/WERC/mobility_102019
https://www.nxtbook.com/ygsreprints/WERC/mobility_092019
https://www.nxtbook.com/ygsreprints/WERC/mobility_082019
https://www.nxtbook.com/ygsreprints/WERC/mobility_072019
https://www.nxtbook.com/ygsreprints/WERC/mobility_062019
https://www.nxtbook.com/ygsreprints/WERC/mobility_052019
https://www.nxtbook.com/ygsreprints/WERC/mobility_042019
https://www.nxtbook.com/ygsreprints/WERC/mobility_032019
https://www.nxtbook.com/ygsreprints/WERC/mobility_022019
https://www.nxtbook.com/ygsreprints/WERC/mobility_012019
https://www.nxtbookmedia.com