US, Canada, and Mexico Rental Market Updates for the Fourth Quarter of 2024

In the fourth quarter of 2024, we are seeing a continuation of the housing market stabilization trend that the US has experienced this whole year. Interest rates are starting to decrease and supply is coming online in several major cities. Canada is addressing its continued housing shortage with strict laws related to short-term rentals and tighter immigration restrictions. Mexico cintinues to grow as an expat/global nomad destination, but this growth is also leading to new laws to regulate the market.

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

US Trends: Good News with More Supply and Lower Interest Rates

• The national vacancy rate is above 7%, with stabilized pricing overall and more multi-family housing available 
• Supply has increased in Seattle, Nashville, Miami, Las Vegas, Phoenix, and multiple locations in Texas 
• Incentives may be available to new renters/new buildings in oversupplied locations with high vacancy rates  
• Nationally, 62% of renters extended their current leases, choosing not to move in order to control their costs 
• Interest rate cuts may encourage some renters to become buyers, but home purchase inventory remains low 
• The NAR Ruling on buyer agency has implications for renters as well. See our summary here
• Impact of Amazon’s return to office mandate on Seattle rental market will be closely watched in early 2025 

Canada Trends – Country Responds to Housing Shortage Crisis

• Effective October 2024, Canada is now tightening its immigration policy due to extreme housing shortages 
• The country is also gearing up for federal elections and possible new economic, immigration, and housing policies 
• Bans on short-term rentals are beginning to increase the long-term rental supply in Vancouver and nearby markets, but overall rental vacancy rates in key employment markets (Toronto, Vancouver, Montreal) remain historically low 
• Rentalrate increases for existing leases are capped, so there is little incentive for renters to move and create availability 

Mexico Trends: Policies Tighten as Global Mobility Grows

• Mexico City continues to grow as an expat/’global nomad’ destination, pushing up prices in preferred locations –  over 16% vs. last year on average  
• With multiple offers for fewer listings in desirable neighborhoods, renters must act quickly on limited availability  
• Landlords are requiring both corporate guarantors and surety bonds as a pre-condition for leasing 
• As of October, short-term rentals are subject to more regulation, with the goal of creating more long-term rentals   
• Guadalajara, Monterrey, and San Luis Potosi continue to expand as corporate relocation destinations; in Guadalajara, landlords require background checks and are expanding their terms regarding lease terminations 

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.