The Impact on Companies When Employees Buy Homes

Thousands of people purchase or sell a home every day. Although real estate transactions don’t happen very frequently for people individually, it is almost guaranteed that, at some point, each of us will buy or sell a home in our lifetime—many of us multiple times.

There are several components that go into deciding whether or not to buy or sell a home, and one of the most common reasons for doing so is directly related to one’s job. The two most common factors in job-related moves are location and price point. For example, if your job is downtown, you will most likely want to buy a home that is as close as possible to avoid a long commute. Also, if you make $300,000 per year, you are probably not going to be buying a $50,000 home, at least not to live in. So what effect does this have on the people who work for us? And as employees, how does buying or selling a home affect our employers? Let’s take a look.

You might be thinking, “My job affects my home-buying experience more than my home-buying experience affects my job.” However, I would challenge you to rethink that assumption. You see, while both statements are true, when we choose to buy a home, it usually comes AFTER we land the job. You might think that proves the prior assumption, but it actually proves the opposite. If you land a job that you hate and don’t see a future with that company, you are far more likely to rent an apartment than buy a home. Why? You don’t foresee longevity in the workplace. Why would you plant your roots in an area where you know in the near future you may be leaving to find a better job? Conversely, why wouldn’t you plant your roots in an area where you see a lengthy career with that company?

Buying a home is a symbol of stability. Generally, people who haven’t started a career don’t buy homes. Taking on a mortgage is no small matter, and those with an inconsistent income are far less likely to commit to a mortgage that is so much harder to get out of than breaking a lease to an apartment.

Buying a home is a significant commitment. Selling a home can be a lengthy process depending on the market, and the threat of getting stuck in a mortgage that you are unable to get out of gives every homebuyer reason for pause.

So what do these three things have to do with benefiting your employer? When an employer sees that their employees are buying houses, it lets them know that they feel comfortable in their roles and are valuable members of the team. This feeling of belonging fosters loyalty. They view their job as a long-term career path because they see the company as stable and they are committed to doing a good job. Each of these are determining factors of productivity. There is nothing that benefits a company more than the productivity of its employees.

Like other employer-based benefits such as health insurance, disability insurance, 401k plans, and sick leave, real estate benefits are just another way for employers to show their employees that they are serious about rewarding their loyalty. Loyalty from the employee is a result of the employer providing great benefits, which encourage their employees to put their roots down with that company. Employees who buy homes are statistically more invested in their current job than those who rent.

Relocalmove is committed to offering the best local relocation package in the country while partnering with the best realtors and agents in the nation. We want your employees to not only save money, but we want them to give you, the employer, the credit.

For more information, please visit www.relocalmove.com or give us a call at 1-844-RELOCAL. We cannot wait to serve you and your employees!