Urban Comeback & Sun Belt Boom: What It Means for Domestic Mobility

A recent report published by Piedmont Crescent Capital shows a nationwide regrowth in urban populations in 2024. Three main drivers of this resurgence were employees returning to in-person work, increased immigration, and a desire to live in the Sun Belt as the region becomes more affordable. Large cities that had previously experienced population declines are now seeing growth. Simultaneously, Sun Belt cities are growing rapidly as well, with some seeing more than a 30% increase in residency.

Restaurants, retail, and hospitality are the key sectors experiencing economic growth as employees return to busy downtown centers and business travel begins to tick upward. Even though about 1.4 million new housing units were built in 2024 (a 1% increase), this was not enough supply to meet the needs of the many people moving into major metros. This is a particular issue in the fastest-growing urban areas. As a result, rent prices are persistently high and increasing, and there continues to be a need for further real estate development to meet housing demand.

The Impact: For relocation professionals, the surge in employees returning to work in downtown (office-centered) and suburban Sun Belt areas means an uptick in people moving. While some areas, particularly in the Sun Belt, are seeing a return to in-person work, this isn’t a universal trend. Many urban centers are still rebounding from the pandemic, and the demand for downtown living has not kept pace with office occupancy. Many companies prefer to place employees in suburban areas, where alternative housing options are often more accessible. However, housing costs and limited inventory in high-demand suburban markets make relocation planning more challenging. These dynamics may require mobility leaders to account for increased travel costs between suburban residences and downtown workplaces and the evolving needs of relocating families.

CapRelo can help source schools, navigate housing and rental trends, and deliver settling-in services that meet your employees where they are. Let us help you navigate this new landscape with confidence. 

Cost of Living vs. Salary: Supporting U.S. Employees Through Inflationary Moves

A recent report shared by AOL examines whether wages are keeping up with increasing inflation rates, depending largely on the timeframe considered. For instance, looking at just the last year or two may give the impression that pay is keeping pace, with 2025 salary growth estimated to range between 3.5% and 4.6%. However, examining the past five to seven years shows that inflation has outstripped wage growth, resulting in a loss of financial ground for many individuals over time. Since the pandemic, wages have risen by approximately 17%, while overall inflation has surpassed 21%, resulting in a subsequent wage decline of 3.2%. For many workers, this gap is felt most in the cost of living, especially in high-cost cities such as Tampa and Houston. Furthermore, wage stagnation continues to be a persistent issue across much of the U.S., with workers struggling to get ahead and build a savings safety net.

The Impact: For relocation professionals, this has direct implications for workers. As employees pursue higher-paying positions or seek to move to lower-cost regions, an increasing demand for packages reflects inflation’s realities. Rising rents, regional salary disparities, and financial stress complicate relocation planning.

This is where the right relocation management company delivers value by helping clients design packages that align with local costs and expectations. Leveraging detailed market intelligence on industry wage trends, we provide cost-of-living and rental data, and connect employees to personal finance expert advice, including ways to manage inflation’s impact and make the most of tools like high-yield savings accounts. CapRelo’s relocation and destination services also ease transitions by helping employees find housing, schools, and community resources. In today’s economic climate, supporting job mobility requires more than logistics; it demands financial insight and strategic flexibility, and CapRelo is here to help companies deliver both.

Commission Confusion? Helping U.S. Transferees Navigate Real Estate Fees

Redfin reports that real estate commission breakdowns have remained unchanged since the new NAR rules went into effect in August 2024. What has changed is that homebuyers are required to sign and agree to a buyer representation agreement prior to touring any home. Further, agents must agree upfront if they are to share their listing agent commission, and whether the buyer pays agent commission. Real estate commission breakdowns remain around 5–6%, and buyer agent fees hover near 2.3–2.5%, despite the expectation that the seller-paid realtor fees would drop significantly. A recent survey by Redfin found that 54% of agents say clients negotiate commission more now, but the rates are not any lower on average. In practice, trends in seller-paid commissions continue, sellers often pay buyer-agent fees to attract offers. Although changes in MLS commission disclosure prevent the public posting of these fees, private negotiations still allow traditional structures to persist.

The Impact: Mobility leaders must navigate this shifting landscape carefully, especially among first-time buyers who may feel uncertainty given the NAR ruling. Relocating employees need a clear pathway to understand who ultimately pays the agent, home price vs. commission rate, and any luxury home fees for executives relocating to higher-end markets. Staying informed on real estate commission breakdowns, listing agent commission norms, and effective commission negotiation strategies will help ensure employees receive clear, equitable support during domestic moves.

Newly Proposed MA Real Estate Rules Could Impact Employee Transfers

According to the Massachusetts Department of Revenue, Massachusetts Department of Revenue, the state is proposing a new rule regarding the real estate capital gains tax under regulation 830 CMR 62B.2.4, which introduces stricter requirements for withholding agents. This applies when non-resident sellers sell properties valued over $1 million, slated to take effect later this year. At closing, the withholding on property sales would collect tax based on net gain tax withholding, with rates of 5% (plus a 4% surtax) for individuals or 8% for corporations.

For transactions without a traditional closing agent, the buyer automatically becomes the agent, responsible for completing the Transferor’s Certification form and submitting Form NRW electronically to the Department of Revenue (DOR) within 10 days (mass.gov). Exemptions allow sellers to avoid withholding if they qualify, such as Massachusetts residents, estates, certain corporations, or transactions under corporate excise tax rules.

The Impact: Relocation specialists must consider these new non-resident seller tax rules and real estate transaction compliance MA requirements. For employees relocating and selling property in Massachusetts, these rules may result in reduced net proceeds at closing, more stringent documentation requirements, and a higher risk of delays or missteps during the sale process. Employers should prepare for reduced closing proceeds due to withholding, require extra documentation, and potentially work with buyers or attorneys to avoid delays or withholding penalties. Proactive coordination between mobility teams, legal advisors, and real estate professionals will be essential to ensure compliance and avoid unexpected withholding liabilities. Mobility leaders should seek expert policy guidance, helping clients understand MA property tax rates and helping reduce the risk of last-minute withholdings by working closely with agents to streamline any necessary filings.

This ensures compliance, reduces surprises, and supports a seamless transition at closing time for employees relocating out of or into MA.

Global Mobility Radar

CapRelo’s Mobility Radar provides valuable insights into trends worth monitoring. This month, we have detected important global mobility updates in Greece, the U.S., and China.

• The United Nations agency has recently initiated a program to create a safety and regulatory framework for the deployment of nuclear reactors on commercial shipping vessels. This initiative aims to decrease global emissions, enhance efficiency within the shipping sector, and ultimately lower food prices.
• The Defense Department announced it would implement “immediate modifications” to its problematic household goods moving contract due to serious worries that the military’s relocation system might lack sufficient capacity to accommodate service members’ moves during its peak season. One change has been to allow the military services to now offer service members reimbursements of up to 130% of the rate previously paid to HomeSafe to conduct moves.
• China has broadened the list of countries whose citizens can travel to it without a visa. Through the state-run outlet Xinhua, the Chinese government revealed that it has initiated a trial policy that “unilaterally grants visa-free entry” to citizens of Brazil, Argentina, Chile, Peru, and Uruguay.