US rental markets, in general, are finally experiencing some “normality” in rental pricing, rate of increases, and availability as we move through the second quarter of 2024. Canadian trends also have their own ‘new normal’, which unfortunately can be defined as sustained high rental rates and limited availability. Mexico’s economy closely tracks to the US, with slower growth this year, but an overall positive outlook, especially related to corporate relocation activity and rental rates in key locations.

Read our latest updates below, gathered from Dwellworks experts across North America, to see the economic factors at play.

US Trends

• The average increase rate for rental units has slowed to 2.5% nationally
• The national vacancy rate is 6.6%, which is good news for renters in most markets. There is good availability in most Midwest markets while Coastal locations are still struggling
• Renters are still heading to major urban locations – NYC has one of the lowest vacancy rates in the country at 1.4%
• Delivery of new construction happened in many markets in 2023, bringing supply more in line with demand. However, current high interest rates mean fewer new units are under construction for delivery in 2024/2025 
• Some Sunbelt markets are overbuilt, leading to landlord concessions
• Renting is still less expensive than buying in most US markets, and the renter population will remain high until interest rates decline and the housing supply increases 
• Renters prefer to preview options online and use digital resources to tour and sign leases (per Zillow Research)  
  
  

Canada Trends

• Canada welcomed over 500,000 new immigrants in 2023, as the country continues to build its workforce 
• Most immigrants move to key employment markets such as Toronto, Montreal, and Vancouver, where vacancy rates remain very low (1-2%)
• Rent increases in Canada are regulated and there is limited turnover as tenants protect their guaranteed rates
• Low unit turnover plus limited new construction means demand far exceeds supply
• Federal and provincial governments continue to review and regulate short-term ‘Airbnb-like’ rentals in an effort to increase rental inventory overall
  
  

Mexico Trends

• Mexico’s economic growth rate is slowed but remains positive
• All eyes are on the June 2 elections for any changes in economic policy
• Housing is in good supply in most markets, keeping prices manageable 
• Rental costs in preferred Mexico City neighborhoods have increased due to increased expat activity and are comparable to rents in most major US metros
• Short-term and long-term rentals are available in secondary markets such as Monterrey, Guadalajara, and San Luis Potosi, but inventory is more limited
  
  

Learn More from Dwellworks

Continue checking back to our pages for housing market updates every quarter. You can also subscribe to our newsletter to get them and other industry news right to your inbox. For a second quarter update on the corporate housing market, read our Dwellworks Living blog here.

About Dwellworks: 

Dwellworks is the world’s largest provider of destination-related services and temporary living solutions for the globally mobile workforce and business travelers. We provide business-to-business solutions for Fortune 1000 and emerging companies directly and through their relocation management partners. Whether a company needs to relocate its employees across the world or the country, we provide a range of support services to help employees and their families transition successfully from their home location to a new destination. 

Dwellworks operates according to our core values of Integrity, Teamwork, Performance, Innovation, and Fun. These are the root of everything we do – from the Teamwork aspect of sourcing and supporting our helpful local Consultants to assist any relocating employee in hundreds of cities worldwide with their move, to the Integrity of our highly-trained Intercultural experts who are here to help transferees adjust to new cultures and confidently settle into their destination locations, to the Innovation of our myDwellworks technology platform that familiarizes employees on assignment with their destination and enables customized conversations on properties, schools, and situation-specific needs.   

Dwellworks supports the diversity of our clients’ globally mobile workforce with personalized destination solutions in 16 countries, covering major relocation markets. Dwellworks has consistently responded to the mobility services and needs of our global clients. In 2020, Dwellworks launched Dwellworks Living to expand our original portfolio of corporate housing markets into a full-service corporate housing operation, offering alternative accommodations for relocation and business travel customers in 125 countries. Our full-service real estate brokerage, Station Cities, supports home rentals, sales, and purchases in the Tri-State New York area and Chicago. Visit our homepage, learn about our services, and read our blogs to learn how we can help with your relocation and business travel needs.