The COVID-19 pandemic changed the way of life for most Americans and impacted nearly every industry. Labor shortages, higher gas prices and supply issues have affected everything from construction, to restaurants, to healthcare, to education, and everything in between.
With remote work options becoming a permanent solution for many, the cost of relocating has also increased. In fact, a study concluded by Pew Research Center, found that a fifth of adults in the U.S. moved, or knew someone who moved, as a result of the pandemic.
Significant move outs are still occurring in states such as, California, Washington and New York. The influx of out of state moves further contribute to the supply and demand problem, influencing higher relocation costs nationwide.
Rising Relocation Costs
Generally speaking, moving rates rise during the “peak” months of May-August, regardless of location. The cost to relocate during peak moving season tends to increase by 20%, according to Josh Morales, CEO of International Van Lines. Yet, since the onset of the pandemic, relocation costs have risen 10-25% and have remained at this level, regardless of seasonality.
There are several factors that have contributed to the rise of moving costs. First off, like many items, packing supplies now cost more than they did during pre-COVID times. There is also a shortage of moving trucks and drivers. An increase in gas prices has further compounded the issue, with some moving companies flat out refusing out of state moves entirely.
Unfortunately, the spike in moving costs can negatively impact medical professionals, new doctors, in particular. While doctors are high earners, young physicians usually carry a large amount of debt. A study from EducationData.org finds that as of 2021, 76-89% of medical students leave school with an average debt of over $215,000. So, while most medical school graduates can expect to earn a six-figure salary, they are also dealing with large education debts.
How New Doctors Can Ease the Cost of Moving
If you are in med school, or the early stages of your career, you may be considering relocation. The recent increased cost of moving is concerning for doctors, given the large amount of education debt they have likely amassed. The good news is, there are a few options available to medical professionals to alleviate the high cost of relocation.
Many medical positions will offer some level of relocation assistance. The question is whether or not the figure offered will be enough to offset the large spike in moving costs. If not, consider applying for a relocation loan, otherwise known as a personal loan, to assist with moving expenses.
Relocating tends to require hefty upfront costs, which many medical professionals, especially those just embarking on their career, do not have on hand. That’s why a relocation loan, specific to physicians and residents, is such an valuable option. This solution allows residents, fellows, doctors and dentists a way to secure funding to cover moving costs, deposits and new purchases.
At Doc2Doc, we offer a low, physician-preferred interest rate on your doctor loan. Our unique program allows medical professionals to receive “cash in hand,” pay off revolving debt and improve their credit score, without any prepayment penalties. To learn more about the advantages of a relocation loan, reach out to us today.