A Mixed Bag for Housing Markets Across the U.S. and Canada

U.S.A. rents were mostly stable with to up slightly, with some softening in the Sun Belt and some modest increases in secondary cities and those with strong Job Markets. Canadian rents were mostly flat or down slightly. 

AIRINC’s latest North America cost-of-living update illustrates how trends vary significantly between the United States and Canada. The reasons were varied with some cities benefiting from an increase in the supply of new housing and others experiencing low demand because of the slowdown in immigration, However, the story varies by region—and so do the implications for mobility planning.

United States Rental Market Trends

Rents in the United States generally increased slightly, several regional dynamics are worth noting.

Affordability Ceilings on the Coasts

In many coastal markets, affordability constraints have begun to limit rent growth. In some cases, rents slowed or declined as renters reached the maximum they were willing or able to pay.

Major Job Markets

Cities with strong economic growth experienced rising rents due to increased demand. Chicago stood out in 2025 as an example of a city where a robust job market helped push rental prices upward.

Oversupply in the Sun Belt

States from Arizona to Florida experienced a surge in new multi-unit construction. This increase in supply led to oversaturation in several markets, resulting in rent concessions and softening rents.

San Francisco’s Return to Strength

San Francisco saw renewed demand as companies reinstated return-to-office policies and highly paid AI professionals moved into the city. This shift contributed to a noticeable strengthening of the rental market.

Canada Rental Market Trends

Canada’s rental market presented a more subdued picture, with most cities experiencing stable or slightly declining rents.

New Construction Expands Supply

Toronto and Vancouver saw significant increases in available units due to newly completed apartment developments, which helped ease rent pressures.

Lower Immigration Reduces Demand

A decline in international students and tighter visa controls contributed to falling demand in university areas and among professionals relocating from abroad.

Softer Job Market Influences Moves

With fewer new jobs available, mobility into major Canadian cities slowed, which further reduced demand for rental housing.

Condo Surplus Adds Inventory

Weak condo sales in several markets encouraged more owners to shift their units into the rental pool. This increase in supply helped keep rents from rising.

A Hard to Define Home Sales Market

United States

Home purchase prices in the United States were generally higher, driven by several factors:

• Interest rates dipped slightly in late summer, increasing buyer activity during an already competitive season.
• Inventory shortages continued to limit options for buyers. The supply of single-family homes remained below pre-pandemic levels in many places.
• High construction costs persisted due to elevated labor costs, shortages of skilled workers, and government policies that increased material prices. These pressures raised the sales prices of both new construction and renovated homes.

Canada

The Canadian home sales market was more varied, reflecting shifting buyer confidence and regional demand:

• Economic uncertainty made some potential buyers and investors cautious, contributing to flat or softening prices in several cities.
• Slight decreases in interest rates encouraged more activity in select markets, helping stabilize or increase prices where buyers felt confident.
• High-priced new construction continued to attract buyers in cities such as Edmonton, where customized builds and builder warranties remained appealing, even at a premium.

How AIRINC Supports Domestic Mobility Programs

As domestic housing conditions continue to evolve, mobility teams depend on accurate data and clear guidance to make informed decisions. AIRINC’s domestic solutions offer the data organizations need to understand changing markets. Our resources include detailed housing and cost-of-living data, lump-sum modeling support, policy benchmarking, and state-to-state tax considerations. Together, these tools help mobility professionals design programs that remain competitive, equitable, and cost-effective.

With a focus on practical analysis grounded in real housing trends, AIRINC supports clients as they adjust their domestic mobility strategies to meet today’s challenges and prepare for what comes next.