Rising Rents and Shifting Housing Dynamics: What’s Driving U.S. and Canadian Mobility?

AIRINC’s latest North America cost-of-living update reveals nuanced housing trends shaping domestic relocation strategies across the U.S. and Canada. From rent spikes to softening home purchase prices, understanding what’s behind these changes can help mobility professionals adapt policies and stay competitive in today’s dynamic market.

Rent Increases – But Not Everywhere

Rents across most U.S. and Canadian locations rose modestly, driven largely by low housing inventory and rising costs for landlords. However, the story varies by region—and so do the implications for mobility planning.

United States:

While rents generally ticked upward, several regional dynamics are worth noting:

• Affordability Ceilings on the Coasts: Rent growth slowed or even reversed in some coastal markets, where affordability has reached its limit for many renters.
• Oversupply in the Southwest: A surge in new multi-unit construction created an oversupply in some cities, prompting rent concessions and a softer market.
• Florida’s Condo Shift: A large number of unsold condos are being converted into rentals, further boosting inventory and easing pressure on rent.
• Seattle’s Comeback: The most significant rent increases in our focus group were seen in Seattle, where return-to-office mandates have revitalized demand for in-city rentals.

Canada:

Similar to the U.S., Canadian rents rose slightly, but for different reasons. New construction remains limited due to high building costs, elevated interest rates, and labor shortages—creating a tight housing supply across most cities.

• St. John’s Stands Out: The city recorded the steepest rent increase in Canada, fueled by strong demand from remote workers and a revitalized oil and gas sector.

A Cooling Home Purchase Market

While rents climb, home purchase prices in the U.S. have softened—a shift attributed to:

• High interest rates

• Home prices outpacing wage growth

• A growing inventory of available homes

While softer home prices may benefit buyers, high interest rates could still cause relocating employees to delay their decision—particularly those debating whether to rent or buy.
In Canada, the home purchase picture is more mixed:

• Late-year interest rate cuts sparked activity in some markets

• Yet overall, the response has been muted, with most markets remaining subdued

What This Means for Mobility

These housing trends underline the importance of flexible and location-specific relocation strategies:

• Review Rental Assistance Policies: In high-demand cities like Seattle or St. John’s, consider adjusting rental support to reflect market realities.

• Consider Temporary Housing Options: Where homebuying is less attractive due to high rates or uncertainty, extended temporary housing may help bridge the gap.

• Monitor Regional Supply Trends: Oversupplied rental markets may present cost-saving opportunities or negotiation room when placing employees.

Stay Ahead with AIRINC Data

As economic conditions shift and housing markets respond, timely, local data is essential for building effective mobility programs. AIRINC’s latest cost-of-living data empowers companies to navigate these trends with confidence—ensuring their workforce stays supported and competitive, wherever business takes them.