Q.1 2025
Data Points
A Selection of AIRINC Research Results
This quarter’s cost-of-living research was conducted primarily in North America, Central and South America, the Middle East, Africa, Maritime Southeast Asia, and Oceania.
Housing Update
Snapshots of expatriate-quality rental markets around the world
Perth, Australia
The rental market in Perth is experiencing significant rent increases, driven by low availability and high demand. Competition remains fierce despite challenges such as rising construction costs and affordability issues, particularly in the western suburbs favored by expatriates.
Rio de Janeiro, Brazil
The rental market is up in Rio de Janeiro due to high demand and limited supply. More people are moving to Rio, and the supply is limited due to high safety concerns. Good apartments in desirable locations are scarce. Many landlords have sold their rental properties because of higher taxes.
Praia, Cabo Verde
The expatriate rental market in Praia is heating up: demand surges while supply remains stretched, especially for properties catering to expatriates. The growing number of expatriates has fueled demand. Constrained by high land costs, new construction lags. This has left a scarcity of modern, expatriate-friendly units with reliable utilities. Rising home prices have forced local professionals to continue renting. This imbalance has tightened the market, which is driving up competition and raising rental costs for expatriates.
St. John’s, NL, Canada
The rental market in St. John’s is up due to a sharp decrease in available supply and a surge in demand. A lack of new construction (driven by rising material costs and labor shortages) has failed to keep pace with the city’s growing population (fueled by remote workers and returning residents drawn to the region’s relative affordability). Meanwhile, home purchase prices have priced many would-be buyers out of the ownership market, forcing local tenants to remain renters. This combination has tightened rental inventory, pushing competition and prices higher.
Kuwait City, Kuwait
Over the past six months, rents for expatriates in Kuwait City have noticeably declined, with the rental market experiencing a decrease. This shift can largely be attributed to stringent government policies that have made it increasingly challenging for expatriates to secure long-term visas. These regulations have not only deterred new expatriates from relocating to Kuwait but have also prompted many existing expatriate residents to leave the country, resulting in a significant reduction in the expatriate population over the past year. Consequently, the vacancy rates for both landed houses and apartments in Kuwait City have surged, leaving a surplus of available properties. With demand for rentals plummeting, landlords have been compelled to lower prices to attract tenants.
Lagos, Nigeria
The expatriate rental market in Lagos is up as demand outstrips supply, particularly in the city’s upscale enclaves favored by expatriates. A steady influx of expatriates has spiked demand for premium housing in areas like Ikoyi, Victoria Island, and Lekki Phase 1. Slowed by soaring land prices, new construction struggles to match this pace. This leaves a shortfall of modern, secure rentals with stable power and water—essentials for expatriate tenants. This gap in supply versus demand has ignited a fiercely competitive market which is pushing costs higher and making it challenging for expatriates to secure quality accommodation.
Manila, Philippines
The market in Manila is down overall, primarily in the mid-range market segment. The exit of Philippine Offshore Gaming Operators has significantly decreased demand for mid-range properties. These online gambling services were based in the Philippines but primarily catered to markets in China, Vietnam, and South Korea. In July 2024, President Ferdinand Marcos declared a ban on these companies, leading to a decline in both local and expatriate employment and housing demand in the sector.
Freetown, Sierra Leone
The expatriate rental market in Freetown is tightening as demand from expatriates climbs against a backdrop of limited supply — particularly in the city’s more secure and desirable neighborhoods. A steady flow of NGO workers, diplomats, and business professionals has heightened demand for quality housing; yet, new construction struggles to keep up, slowed by high import costs for materials and unreliable infrastructure. Home purchase prices have soared, locking wealthy locals into renting. This supply/demand crunch has sparked a competitive market, pushing costs up and testing expatriates’ budgets in a city where luxury comes at a premium.
Overview, United States
Rents in the past year were up for most U.S. locations, but at a more modest rate than the previous few years. Increasing rents were due to rising costs for landlords, low inventory, barriers to homeownership such as high interest rates, and an increase in the number of individual households. Also, remote work continued to fuel migration to suburbs and rural areas and to create demand for single-family houses. Rent increases slowed significantly during the second half of 2024, with some locations seeing rents falling or an increase in rent concessions, such as one-month’s free rent or waived fees. On the East and West Coasts, this softening may be attributed to affordability: rents have reached the maximum that can be supported by tenant salaries. The Southwest had record high amounts of new construction releases over the past two years, leading to a glut of apartments and lower rents. In addition, Florida has a large inventory of unsold condos, many of which are being released to the rental market.
Goods and Services Inflation
Selected locations with inflation higher than 5% for 6 months
Angola
Argentina
Bolivia
Burundi
Cuba
Democratic Republic of Congo
Egypt
Gambia
Gaza
Ghana
Haiti
Iran
Lebanon
Liberia
Malawi
Nigeria
Northern Mariana Islands
Palestine
Sao Tome and Principe
South Sudan
Sudan
Syria
Venezuela
Yemen
Zambia
Zimbabwe
Selected 3-month Exchange Rate fluctuations of more than 5%
Afghanistan
Currency: AFN
Change vs EUR: -5.5%
Change vs USD: -6%
Colombia
Currency: COP
Change vs EUR: 6.5%
Change vs USD: 6.1%
Russia
Currency: RUB
Change vs EUR: 18.8%
Change vs USD: 18.2%
South Sudan
Currency: SSP
Change vs EUR: -16.8%
Change vs USD: -17.4%
United States Tax Update
At the Federal level for 2025, there have been inflation-indexing adjustments to tax brackets and the standard deduction. The tax rates are unchanged. There is an increase in the Social Security wage base.
The statistical itemized deductions for homeowners and renters have been updated based on new statistical data released by the IRS and Bureau of Labor Statistics. All deduction categories used in the U.S. tax data for charitable donations, mortgage interest, real estate tax, and average state income tax have declined slightly. The net effect of these changes is primarily an increase in tax impacting high-income individuals. With the current U.S. tax law in effect (Tax Cuts and Jobs Act), over 90% of individual U.S. taxpayers are claiming a standard deduction instead of itemizing deductions.
The Tax Cuts and Jobs Act (TCJA) of 2017 is set to expire at the end of 2025. Republicans control the White House and both chambers of Congress and are expected to use the budget reconciliation process to enact a new tax bill. It is still unclear which of the TCJA expiring provisions will be prioritized (as they are estimated to cost $4.6T over the next 10 years), and whether other revenue offsets, tariffs, or tax increases would be needed to pay for the new bill. AIRINC will monitor ongoing negotiations and provide updates throughout 2025.
Notable state tax developments
California
The Golden State has increased the State Disability Insurance (SDI) rate from 1.1% to 1.2%. The top marginal rate, which is the highest in the nation, is now 14.5%.
Georgia
The Peach State has reduced the flat tax rate from 5.49% to 5.39%, which will be further reduced by 0.1% each year through 2029. Eventually, government leaders seek to eliminate the state individual income tax altogether.
Hawaii
The Aloha State has enacted the largest income tax cut in state history, aimed to reduce the tax burden for low- and middle-class households. The income thresholds for the tax brackets increase each year in 2025, 2027, and 2029. The standard deduction will increase each year in 2026, 2028, 2030, and 2031. The Hawaiian government estimates state income tax paid by working class families will fall by 71% by 2031.
Iowa
The Hawkeye State has scrapped their progressive rate schedule (top rate 5.7%) and replaced it with a flat 3.8% tax rate.
Louisiana
The Pelican State has scrapped their progressive rate schedule (top rate 4.5%) and replaced it with a flat 3% tax rate.
Mississippi
The Magnolia State has reduced their top rate from 4.7% to 4.4%. A further top rate reduction is scheduled to 4% in 2026.
Missouri
The Show-Me State has reduced the top rate from 4.8% to 4.7%.
Nebraska
The Cornhusker State has reduced the top rate from 5.84% to 5.2%. Further reductions are scheduled to 4.55% in 2026, and 3.99% in 2027.
North Carolina
The Tar Heel State has reduced the flat rate from 4.5% to 4.25%. Further reductions are scheduled to 3.99% in 2026. From 2027 to 2034, if General Fund revenue targets are met, the rate will be lowered to the greater of (1) the prior year rate decreased by one-half percentage point, or (2) 2.49%.
Wisconsin
The Badger State has reduced the top rate from 6.5% to 5.12%.
Research Location Update
Q1 2025 Researched Locations and Upcoming Q2 2025 Locations
AIRINC researches more than one hundred fifty locations each quarter.
Upcoming Webinars
Back to Basics on Housing Allowances
Housing can be one of the most emotional aspects of an assignment: securing a safe and comfortable rental is often top of mind for your employees and their families. On the other hand, housing costs can be one of the most expensive elements of an assignment.
Whether you’re new to Global Mobility or you’ve been in the industry for a while, do you need a refresher on housing allowances? Join us for a 30-minute session where we will follow an assignee’s housing journey and discuss:
- Typical market practice for housing support
- Calculating and delivery housing support
- Setting expectations with the assignee and other stakeholders – communication is key!
Benchmark Surveys
2025 Mobility Outlook Survey
The 2025 Mobility Outlook Survey is here, redesigned to capture your perspective on the forces shaping Mobility’s future. The findings? Global Mobility is evolving, balancing competing priorities, driving talent growth, and adapting to the demands of an agile workforce.
Recorded Webinars
Future-Proofing Global Mobility: 5 Ways to Stay Ahead in a Changing World
The global landscape is shifting fast — is your Mobility strategy keeping up?
From AI-driven innovation to geopolitical change and evolving talent expectations, organizations are at a crossroads: react to disruptions or design bold new solutions that redefine Mobility’s role. In this dynamic session, we’ll go beyond trends to uncover actionable strategies that Mobility leaders are using to stay agile, exceed expectations, and make a global impact.
White Papers & Articles
The Global Mobility Function: A Collection of Case Studies
Read this collection of case studies from our interviews with Mobility leaders, illustrating the broad range of activities that Global Mobility is called to do and the myriad ways that the function can be structured based on each individual company’s context. This is a companion piece to our recent paper, The Global Mobility Function, which shows the various considerations that companies must take when structuring their Mobility functions.