Every quarter AIRINC provides a comprehensive and insightful update on our cost-of-living research, including a detailed analysis of rental markets around the world.
The Kenyan shilling has depreciated enough against the US dollar (USD) for rents to increase substantially. There is an upward trend in landlords asking to be paid in USD due to the volatility. The supply of quality houses is still limited but new secure construction and more renovated properties are coming to the market.
Sources confirmed the local market reports and studies that rents across the country had spiked again since Q1 2023. Low supply was noted across the major locations we set. Rising interest rates for home buying pushes more people into rentals and enormous demand from the post-pandemic reopening of the country were key factors in the rent increases. Brisbane, Perth, and Sydney were among the cities where rents increased.
Kuala Lumpur saw increased demand and higher prices for executive level housing, especially for larger properties. Johor Bahru, due to its proximity to Singapore, saw rents spike this past year as a larger number of executive-level immigrants came from Singapore to Johor Bahru due to the city's lower cost of living, alongside Singapore's rising rents and currency appreciation.
Singapore’s rental market has started to cool. There has been a decrease in expatriate arrivals for the third consecutive quarter due to the high rents in Singapore, and there has been an increase in supply with new units coming onto the market. The decrease in demand and increase in supply has led to much lower inflation than we saw last year. The rental market is expected to continue to have low inflation in the coming quarter as mortgage interest rates stabilize and landlords make smaller increases to asking rents.
Supply is extremely limited with a large influx of people returning to Tonga after the pandemic. The supply woes were not helped when, last year a huge volcanic eruption hit Tonga and many houses were destroyed. They are still under the process of reconstruction.
US rental markets have settled down since the high-paced inflation of last year, but most were still up a modest amount. In the markets that were up there was low supply caused by not enough new construction/high construction costs, continued demand from would-be buyers who have been kept in the rental market by high interest rates, Airbnb pressure on limited rental stock in some places, and COVID-inspired scenarios of families leaving city centers for larger homes in rural and suburban markets and more households being created by individuals no longer willing to have roommates.
At AIRINC, we strive to provide up-to-date and insightful data points on rental markets worldwide. Our research enables companies to navigate the complex landscape of housing costs and make informed decisions. Why not join us for one, or both, of the webinars in our Focus On series where we share insights from our updated data research: