Everything Costs More
Unfortunately, gas prices are rising, and they don’t appear to be falling anytime soon. Gas prices have gone up over 25% since January 1st of 2022. As of April, gas prices across the country averaged $4.17 per gallon. That’s a pretty penny if you’re a frequent commuter.
Gas prices affect your move and all areas of the economy due to the simple fact that fuel costs are built into the price of everything. For example, it costs money for food suppliers to get their producers to the vendors. If fuel prices are going up, you can safely assume that most sectors of the economy will follow.
The price of gas is volatile due to countless factors, and the price change is felt differently across different states and countries worldwide. Economists predict the average national gas price will sit between $5 and $6 this summer.
Do you know what it also is this summer? Moving season. The moving season always falls during those months when the kids are out of school, and the weather is ideal for work outdoors.
Economic Trends & Moving
Moving costs have gone up in the last few years due to a few things. First, there’s the supply chain shortage. Manufacturing costs for boxes and trucks have increased drastically.
Second, more people are leaving certain states like California and New York than people moving to them due to COVID-19 restrictions. These are now considered mass-exodus states. For moving companies, this means trucks are leaving those states full and returning empty. In other words, they’re only making money on one trip rather than two.
Third, moving companies add surcharges for gas. That usually falls anywhere from 10-20%. With fuel prices skyrocketing, the range now sits around 20-30%. To put that into perspective, a long-distance move that would cost about $6,000 may now run about $7,000. It’s not exactly pocket change.
What Can You Do About It?
If you think you can beat the fuel surcharge by renting a U-Haul and moving yourself, you’re dead wrong. A U-Haul gets about 10 miles per gallon with nothing in it. Once you add the weight of your furniture and belongings, that mileage drops to about nine. So, a DIY move will mean that gas prices will affect your move even more drastically than hiring a moving company.
The best advice we can give you is to schedule your move in the off-season. The peak moving season is during summer, and any move will always be more expensive during those months. So if you can make the move between September and February, then you’ll surely save at least a few hundred dollars.
If you decide to make a DIY move, purposefully avoid states with higher gas prices than average. Fill up before you get to California or New York.
There is no escaping rising gas prices. It’s a reality we’ll all have to live with for a little while. Like most other economic difficulties, the markets will correct themselves. But, for now, we’re all stuck paying a bit more for services.