How do I move user's home folder to another location if I have CageFS installed?

You can move home directories of the users in the following way:

cagefsctl --disable username1 username2
cagefsctl --unmount username1 username2

Move home directories to a new location, edit /etc/passwd to reflect new path then enable CageFS:

cagefsctl --update-etc username1 username2
cagefsctl --enable username1 username2