While pricing and vacancy balance is coming to rental markets in the US, that is not the case in preferred corporate relocation destinations in Canada and Mexico. Even in the US where rental prices are cooling overall, rental prices in the neighborhoods requested by many expatriates and relocating professionals continue to rise. Homes in desirable Mexico neighborhoods are also going fast as supply and demand levels are not aligned, and that imbalance continues in key Canadian markets like Vancouver and Toronto as well.

Dwellworks supports the effective rental home search of thousands of customers every year. Read our latest updates below, gathered from Dwellworks experts across North America, to see the economic factors at play and how we can help.

US Trends - Some Stabilization but Destination Cities Remain Expensive and Competitive

• The national vacancy rate remains above 6%, which is good news for renters in most markets
• Supply has increased in many markets, including Seattle, Nashville, and multiple cities in Texas
• Supply of new apartments will decrease by 2025 – higher interest rates in the past few years means fewer new construction loans
• 62% of current renters are renewing and getting favorable terms from landlords
• Incentives may be available to new renters in many oversupplied locations with high vacancy rates
• Renters are also still heading to major locations with tight supply – the vacancy rate in NYC, for example, is below 1.5%
• Silicon Valley vacancy is tightening due to new tech investments and expansion
• Renters continue to prefer to preview options online and use digital resources to tour and sign leases

Canada Trends - Newcomers and Locals Compete for Housing

• Canadian policy continues to support developing the country’s workforce through immigration
• New arrivals compete with local residents for limited rental supply
• Rental vacancy rates in key employment markets like Toronto, Vancouver, and Montreal remain low
  
• Restrictions on vacation rentals in several cities are meant to increase the supply of long-term rental housing, but there is no expansion of inventory thus far
• Rental rates are increasing but are capped, so there is no incentive for renters to move or buy or for developers to build, creating a stagnant rental supply market
  
  

Mexico Trends - A Growing Expat Economy Leads to Growing Competition

• Mexico continues to grow as an expat/’global nomad’ destination, pushing up prices in key locations
• Landlords are asking for corporate guarantors and have increased the price of their surety bonds
• With multiple offers for listings in desirable neighborhoods, renters must act quickly
• Properties with lower rents may be in less secure neighborhoods – driving up competition and costs in other requested locations with limited listings
• Rental costs in preferred Mexico City neighborhoods are now comparable to many other US/global hubs

Learn More from Dwellworks

Continue checking back to our pages for housing market updates every quarter. Read our third quarter report for Europe here. You can also subscribe to our newsletter to get our reports and other industry news right to your inbox.

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.