Q.1 2024
Data Points
A Selection of AIRINC Research Results
This quarter’s cost-of-living research was conducted primarily in North America, Central and South America, the Middle East, Africa, Maritime Southeast Asia, and Oceania.
Housing Update
Snapshots of expatriate-quality rental markets around the world
Bridgetown, Barbados
After a successful government program to welcome digital remote workers and longer-term expatriates, a surge in demand has seen the supply of apartments and more affordable units shrink. High-end villas and the top luxury sector of the market did not see such high inflation.
Canada
Rents are up in Toronto as demand has increased, pressure on the rental market has seen vacancy rates drop. In Edmonton, vacancy rates plummeted due to an increase in domestic and international arrivals. Reports of record low vacancy rates in Calgary as well, saw rents boosted as a robust spring rental season is expected. Other Canadian locations’ rental prices have also moderately increased.
UAE
Rents increased in Dubai as, demand for villas is high and supply is very limited. Even lower end properties in less desirable areas have seen prices increase. This past year has seen more international arrivals enter the rental market which has tightened competition for senior, executive level villas. Abu Dhabi prices were also up due to supply and demand imbalances.
Australia
With very low vacancy rates in Adelaide, the market has remained tight. New apartment projects are still under construction. Many newer properties are far away from the city center which has not been ideal for expats.
Brisbane has seen a spike in demand for rentals closer to the city center, and with a growing population, rents are up. Many people who were once working from home in small towns during the pandemic have been returning to the office, which is driving the increase in rental demand.
In Gladstone, the surge in rental prices is attributed to the limited availability of new rental properties, coupled with a significant influx of individuals relocating to the region in response to the abundance of high-quality job opportunities. Vacancy rates have dropped.
Most other Australian locations are moderately up with just a few remaining stable.
Jakarta, Indonesia
The flow of expats arriving has not slowed this past quarter. The rental market, especially for houses, is very limited. This landlord’s market makes bidding wars among potential tenants a possibility for prime units.
Kuala Lumpur, Malaysia
Increasing rents can be attributed to a shortage of properties. Many construction projects were supposed to be completed but were left unfinished because of the pandemic. Landlords have increased rents for newer buildings.
Singapore
After several years of heavy rent increases, the rental market is now in decline with higher vacancy rates after thousands of apartments were added to the market. A noticeable softening in demand from expatriates across all industry sectors has seen rents drop.
Goods and Services Inflation
Selected locations with inflation higher than 5% for 6 months
Angola
Argentina
Burundi
Democratic Republic of Congo
Egypt
Ethiopia
Gaza
Ghana
Haiti
Iran
Lebanon
Liberia
Malawi
Nigeria
Palestine
Rwanda
Sao Tome and Principe
Sierra Leone
Somaliland
South Sudan
Sudan
Syria
U.S. Virgin Islands
Vanuatu
Venezuela
Yemen
Zambia
Zimbabwe
Selected 3-month Exchange Rate fluctuations of more than 5%
Argentina
Currency: ARS
Change vs EUR: -5.6%
Change vs USD: -5.2%
Chile
Currency: CLP
Change vs EUR: -9.1%
Change vs USD: -8.8%
Egypt
Currency: EGP
Change vs EUR: -31.6%
Change vs USD: -31.3%
Ghana
Currency: GHS
Change vs EUR: -6.7%
Change vs USD: -6.3%
Kenya
Currency: KES
Change vs EUR: 10.4%
Change vs USD: 10.9%
Nigeria
Currency: NGN
Change vs EUR: -50.2%
Change vs USD: -50%
Northern Cyprus
Currency: TRY
Change vs EUR: -9.8%
Change vs USD: -9.4%
South Sudan
Currency: SSP
Change vs EUR: -32%
Change vs USD: -31.8%
Sri Lanka
Currency: LKR
Change vs EUR: 6%
Change vs USD: 6.5%
Suriname
Currency: SRD
Change vs EUR: 6%
Change vs USD: 6.6%
Turkey
Currency: TRY
Change vs EUR: -9.8%
Change vs USD: -9.4%
Zimbabwe
Currency: ZWL
Change vs EUR: -65.4%
Change vs USD: -65.3%
United States Tax Update
At the Federal level for 2024, there have been inflation-indexing adjustments to tax brackets and the standard deduction. The tax rates are unchanged. There is an increase in the social security wage base. Statistical itemized deductions have not been updated as the IRS published information on deductions claimed was not available at the time of the tax update. The net effect of these changes varies by income level, family size, state selected, and deduction type. An election-year bipartisan agreement is unlikely, but possible, as Democrats seek to restore the 2021 temporary higher child tax credits from the American Rescue Plan, and Republicans pursue a restoration of the deductibility of research and development (R&D) investments that expired at the end of 2022. AIRINC will update the tax models, as needed.
Notable state tax developments
Arkansas
The Natural State top marginal rate has decreased from 4.9% to 4.4%.
California
The Golden State has increased the State Disability Insurance (SDI) rate from 0.9% to 1.1%, and removed the cap on contributions. The top marginal rate, highest in the nation, is now 14.4%.
Connecticut
The Constitution State has decreased the bottom two rates from 3% and 5%, to 2% and 4.5%.
Georgia
The Golden State has increased the State Disability Insurance (SDI) rate from 0.9% to 1.1%, and removed the cap on contributions. The top marginal rate, highest in the nation, is now 14.4%.
Indiana
The Hoosier State has reduced the flat tax rate from 3.15% to 3.05% for 2024. If state revenues increase by at least 2% from the previous budget year, the rate will continue to decrease to 3% in 2027-2028, and 2.9% from 2029 onwards.
Iowa
The Hawkeye State top rate has been reduced from 6% to 5.7%. Further top rate reductions are scheduled to 4.82% in 2025, and finally a flat rate of 3.9% in 2026 onwards.
Kentucky
The Bluegrass State flat tax rate has been reduced from 4.5% to 4%.
Mississippi
The Magnolia State top rate has been reduced from 5% to 4.7%. Further top rate reductions are scheduled to 4.4% in 2025, and 4% in 2026 onwards.
Missouri
The Show-Me State has reduced the top rate from 4.95% to 4.8%.
Montana
The Treasure State has enacted tax reform to allow Federal standard and itemized deductions, and reduced the top rate from 6.75% to 5.9%.
Nebraska
The Cornhusker State has reduced the top rate from 6.64% to 5.84%. Further reductions are scheduled to 5.2% in 2025, 4.55% in 2026, and 3.99% in 2027 onwards.
North Carolina
The Tar Heel State has reduced the flat rate from 4.75% to 4.5%. Further reductions are scheduled to 4.25% in 2025, and 3.99% in 2026 onwards. From 2027 to 2034, if general revenue fund targets are met, the rate will be lowered to the greater of (1) the prior year rate decreased by one-half percentage point or (2) 2.49%.
North Dakota
The Peace Garden State has reduced the top rate from 2.9% to 2.5%.
Ohio
The Buckeye State has reduced the top rate from 3.99% to 3.5%.
Utah
The Beehive State has reduced the flat rate from 4.85% to 4.65%.
Washington
The Evergreen State does not impose an income tax. However, effective July 1, 2023, a new 0.58% payroll tax for employee-paid premiums to fund WA Cares long-term insurance benefits has been implemented. Employees can opt out if they have alternate coverage, are certain qualifying individuals, or are residing out of state.
Wisconsin
The Badger State has reduced the top rate from 6.5% to 5.12%.
Research Location Update
Q.1 2024 Researched Locations and Upcoming Q.2 2024 Locations
AIRINC researches more than one hundred fifty locations each quarter.
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