BC-MOVING:MK – business (950 words)

Housing market, recovering economy keep people moving

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By Kristen Gerencher

CBS MarketWatch

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SAN FRANCISCO – Americans are on the move and hiring interstate hauling companies to help them put down roots in new places.

Nudged by the recovering U.S. economy, a hot housing market and the prospect of more and better jobs, Americans are setting off for greener pastures in larger numbers this summer, according to national moving companies.

With the kids out of school and warmer weather working in their favor, summer is typically the time many Americans round up boxes, roll up their sleeves and prepare to move to a new home.

This year the effect is even more dramatic – despite higher gas prices – as more consumers act on their pent-up longings before record-low interest rates reverse course, making loans more expensive, moving experts said.

Business has picked up appreciably at full-service, interstate moving company Bekins Van Lines where the volume of private and government moves has increased, marketing director Kimberly Warren said. Corporate relocations are have grown by 8 percent to 10 percent compared with last year at this time, she said.

“We have seen an increase in both shipment size and the number of shipments this summer,” Warren said. “As interest rates have remained low, people have become a little more mobile than they had been prior to and including 2001.

“We see traffic from the Northeast going down to the Southeast, and in the Midwest we see an even split of tonnage that moves into the Southwest and Southeast,” she said. “We see a lot of Sun Belt movement, so a lot of our traffic patterns tend to be one-way.”

The uptick is similar at Mayflower and United Van Lines, spokeswoman Jennifer Bonham said.

“This year we’ve had a much higher demand for relocations than in the past five years,” she said, noting that demand is outpacing that of 1999, the highest year since the companies combined in 1995. Mayflower and United expect a 2 percent to 3 percent increase in moves compared to 1999, in which 1.87 billion pounds of goods were transported.

“The economy is getting better,” Bonham said, noting that people may be feeling more confident in their ability “to move on to different jobs.”

Whether it’s across town or across the country, about 43 million Americans move every year, a number that’s held relatively steady, Warren said.

Of that number, 17 million to 20 million people may relocate this summer, according to U-Haul.

Unlike the growth in demand Bekins, Mayflower and United Van Lines are reporting, business has been steady at do-it-yourself mover U-Haul, spokeswoman Joanne Fried said.

“It seems like every year there’s a consistency of people moving based on the milestones they’re reaching, whether it’s divorce, relocation, moving from an apartment to a home,” she said, noting that leases routinely expire and college students move in and out of dormitories at predictable times. “That’s going on year after year, regardless of the economy.”

Even so, U-Haul does 45 percent of its moves between Memorial Day and Labor Day, and the company is on track to meet that standard this year, she said. U-Haul recommends calling ahead at least two weeks to reserve a moving van or truck.

Bekins, United and Mayflower recommend giving four weeks notice, with some Bekins bookings extending out 60 days, Warren said.

Bekins moves 60 percent of its overall volume in June, July and August, Warren said, with the last weeks in June and July the busiest ones. “Our capacities are pretty tight during those times.”

Higher gas prices have translated into a 2 percent to 3 percent increase in Bekins’ shipment costs compared to last summer’s level, Warren said. Still, the company will adjust the rate every month to reflect the absolute cost of fuel, so if gas prices drop so will the fuel surcharges, she said.

U-Haul, which bases its rates on location logistics, distance traveled and supply and demand, hasn’t increased its rates due to rise in gas prices, Fried said, though customers typically assume the cost of gas separate from the equipment rental charge. “It has not affected our business yet.”

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A U-Haul medium-sized 17-foot truck moving the contents of a two-bedroom apartment from New York City to St. Louis in early July would cost $1,488, including an allowance of five days and 1,158 miles to cover the trip.

The same truck moving a two-bedroom from Los Angeles to Denver in mid-August would run $1,292, including a five-day rental and 1,215 miles.

A typical residential, full-service move from Mayflower or United Van Lines runs $3,650, with an average 6,784 pounds of stuff traveling 1,321 miles to the new destination, Bonham said. People tend to hire professional movers to transport the contents of four to six rooms, she said.

A typical range at Bekins is $1,500 to $3,000, depending on the mileage and services purchased, Warren said.

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Overall, relocations should continue their frenzied pace through the balance of the year, Warren said.

“We’re pretty bullish on the fact that there’s still a huge demand for housing out there and supply doesn’t meet the demand yet,” Warren said. “We’re anticipating the housing market staying strong throughout the year.”

Consumers considering hiring a moving company would be wise to consult the Federal Motor Carrier Safety Administration’s guide called “Your Rights and Responsibilities When You Move,” which is available online at http://www.fmcsa.dot.gov/factsfigs/rights.htm.

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AP-NY-06-29-04 1341EDT