New mover surge levels out as September approaches
Cleanlist identified 66,609 new movers in Canada this past August. There was a modest 15.9% decrease in new movers month-over-month from July 2024 to August 2024 and a minimal 3.7% decrease year-over-year from August 2023 to August 2024.
Considering the record-breaking number of new movers in July 2024, it is no surprise that the number of new movers in Canada died in August 2024. However, the number of new movers this past August was comparable to August 2023.
What’s caused new mover counts to steady? And what’s next?
One potential reason for the decline in new mover numbers could be the recent trend of declining interest rates. While this may seem counterintuitive, lower interest rates can cause some potential buyers to move to adopt a “wait-and-see” approach, hoping for even better borrowing conditions in the near future. As financing becomes more affordable, homebuyers could start to feel less inclined to move immediately and rather way to capitalize on lower rates.
The Bank of Canada’s most recent interest rate drop happened on July 24 (to 4.50%) and again on September 4 (to 4.25%). Declining rates can lead to a slowdown in market activity and reduce the number of available homes, further contributing to the decline in new movers. These factors could explain the 15.9% MoM decrease and the slight 2.7% YoY decline in new mover activity.
Other August 2024 statistics:
- All provinces saw a decrease in new movers from August 2023 to August 2024 except Quebec. Quebec saw an 8.5% in new movers.
- The provinces with the biggest decrease in new movers were the Northwest Territories and Nunavut (-57.5%), Newfoundland (-17.9%) and P.E.I. (17.8%).
- All provinces saw a decrease in new movers from July 2024 to August 2024.
- The provinces that saw the biggest decrease in new movers MoM were the Northwest Territories and Nunavut (55.6%), Newfoundland (51.2%), and New Brunswick (46.3%).
Why Mover Data Matters
Consumer spending drives sales across many industries and we’ve gathered that spending accelerates significantly for consumers on the move. Some studies report that new movers increase their spending by as much as 10x during the move cycle which lasts between two and six months. Savvy marketers understand this behaviour and put their marketing dollars to work to win more business.
In addition to the obvious packing and moving costs, new movers spend money in three main areas: home improvement, household management, and neighbourhood integration.
Money spent on home improvements typically includes renovations, furniture and appliances, paint, flooring, window coverings, decorating, alarm and security systems, decks, landscaping, roofing and siding, and HVAC systems.
Money spent on household management decisions is less obvious, but also important to new movers. They tend to review and reconsider their spending on things like insurance, financial planning and investments, internet and communication services, energy consumption, and even new vehicles.
And finally, money is spent on neighbourhood integration. New movers tend to change their shopping and entertainment habits while seeking out new stores and services in the neighbourhood for groceries, household supplies, landscaping and snow removal, child care, restaurants and entertainment venues.
Knowing who these new movers are gives marketers a huge competitive advantage by being the first to offer welcome deals, trials, information and other promotions. As we all know, the first to establish a relationship is often the winner of a long-term and profitable customer.
