AIRINC’s Q1 2025 Data Points offers a timely snapshot of the trends shaping the cost of living and tax environment for expatriates. While the report spans a wide array of global locations, this first blog in our new Data Points series hones in on developments within the United States. From housing affordability challenges to inflation-adjusted tax brackets, U.S. mobility decision-makers are navigating a market that’s showing signs of cooling—yet still full of complexity.
Cracking the Case on Egg Prices
Faced with a stubborn bird flu outbreak and ongoing trade disputes, American egg producers have struggled to meet demand, sending prices soaring. The government’s response? Bring in more eggs—fast. While wholesale prices have begun to cool, many consumers are still feeling the sting at the supermarket. Read more here.
U.S. Housing: Slowing Rents, But Complexity Persists
After years of climbing rental costs, the U.S. expatriate housing market is cooling—but not evenly.
- Rents continue to rise, but the pace has slowed significantly, especially in high-cost coastal markets where affordability has reached its limits.
- Landlords are offering concessions like free rent or waived fees to fill units in softening markets.
- Remote work migration is sustaining demand for single-family homes in suburbs and smaller cities.
- Florida’s unsold condos are adding rental supply, while the Southwest’s new apartment surplus is pushing rents lower.
In short, while we’re seeing relief from runaway rent increases, regional variances remain sharp. For mobility professionals, this means policies must remain flexible and grounded in fresh, local data.
Tax Policy: Inflation Adjustments and Political Uncertainty
On the tax front, 2025 brings modest changes—but storm clouds may be on the horizon.
- Federal tax brackets and the standard deduction have been adjusted for inflation, but the net impact is slightly higher taxes for high earners due to lower itemized deductions.
- The Social Security wage base has increased, affecting payroll costs.
- The Tax Cuts and Jobs Act (TCJA) is set to expire at the end of 2025. With Republicans in control of Washington, a new bill is expected—but specifics remain unclear
State-level tax shifts are creating further complexity:
- States like Iowa, Louisiana, and Georgia are moving toward flat tax systems.
- California has raised its already-high top marginal rate.
- Hawaii’s sweeping tax cut will significantly reduce the burden on working-class families.
These changes—and the uncertainty ahead—mean that mobility teams should be watching tax reform developments closely. Planning for 2026 will require scenario modeling and a proactive approach. Read more on the full changes here.
How do these changes affect compensation?
For up-to-date information, please reach out to your AIRINC representative or click here to reach our inquiries team now.
Subscribe to our blog to stay updated on changes around the world that impact Global Mobility, including your cost of living allowances.
Read more on AIRINC's latest research results here.