North American Housing Update
To ensure your domestic transferees receive benefits that are aligned to market conditions, AIRINC has just released updated rental and home purchase data across North America. Regular data reviews are implemented to calculate domestic allowance payments including Mortgage Subsidies, Cost of Living and Lump Sums.
Market Insights: Home Purchase
Canada: Home prices have softened across many markets, reflecting a market correction after several years of unsustainable growth. High interest rates have made mortgages more expensive and homes less affordable, dampening buyer demand. Buyers have more choice with increased housing supply; yet there is less demand due to slower population growth (in some areas), rising unemployment, and recession concerns.
USA: The housing market has cooled, with price declines in many markets, particularly in the South and West. High mortgage rates continue to restrict would-be buyers: first-time buyers do not want to stretch household budgets after recently experiencing rent relief; current homeowners with low locked-in interest rates do not want to pay the increased mortgage rates required to move up the property market. The resulting rise in inventory, longer listing times, and increased price reductions have led sellers to reduce asking prices.
Constant / about the same
New York NY, U.S.A.
Red Deer AB, Canada
Saskatoon SK, Canada
Slight Increases
Montreal QC, Canada
Quebec QC, Canada
St. John's NL, Canada
Slight Decreases
Baltimore MD, U.S.A.
Barrie ON, Canada
Calgary AB, Canada
Cambridge ON, Canada
Carlsbad CA, U.S.A.
Charlotte NC, U.S.A.
Chicago IL, U.S.A.
Edmonton AB, Canada
Halifax NS, Canada
Houston TX, U.S.A.
Indianapolis IN, U.S.A.
Kelowna BC, Canada
Los Angeles CA, U.S.A.
Minneapolis MN, U.S.A.
Philadelphia PA, U.S.A.
Phoenix AZ, U.S.A.
Regina SK, Canada
San Francisco CA, U.S.A.
Tucson AZ, U.S.A.
Vancouver BC, Canada
Wilmington NC, U.S.A.
Winnipeg MB, Canada
Highest Decreases
Atlanta GA, U.S.A.
Bellingham WA, U.S.A.
Burlington ON, Canada
Dallas TX, U.S.A.
Denver CO, U.S.A.
Raleigh NC, U.S.A.
San Diego CA, U.S.A.
Seattle WA, U.S.A.
Toronto ON, Canada
Market Insights: Rent
Canada: Rental prices are declining in many major cities following a prolonged period of growth, while smaller markets remain more stable. Increased supply is a key factor, driven by new construction of smaller units (1- to 2- bedrooms) and more condo owners entering the rental market.
At the same time, demand has eased due to slower population growth and fewer international arrivals. Despite this, single-family rental homes continue to see stable or modestly increasing rents due to limited supply.
U.S.A.: Rental markets are softening in many regions, particularly across the Sunbelt and Southeast where a construction boom in multi-unit rental buildings has led to oversupply. The use and value of rent concessions are increasing, reaching averages that equate to 9% of annual rent. Up to 40% of large multi-unit buildings are offering concessions on new leases.
There is an emerging trend of “accidental landlords” — particularly in Texas and Florida – where unsold homes are being converted to rentals. In Florida, high insurance rates have stalled sales on detached homes; rising condo fees and large special assessments have stagnated condo sales. This is further increasing supply.
While apartment rents are under pressure, single-family home rents are stable or rising due to limited availability and continued demand from families. Stronger rental performance persists in tech hubs and economically robust coastal and Midwestern cities.
Constant / about the same
Barrie ON, Canada
Burlington ON, Canada
Cambridge ON, Canada
Halifax NS, Canada
Kamloops BC, Canada
Kelowna BC, Canada
Los Angeles CA, U.S.A.
Montreal QC, Canada
Quebec QC, Canada
Red Deer AB, Canada
Regina SK, Canada
Saskatoon SK, Canada
Sudbury ON, Canada
Winnipeg MB, Canada
Slight Increases
Albany NY, U.S.A.
Atlanta GA, U.S.A.
Baltimore MD, U.S.A.
Charlotte NC, U.S.A.
Chicago IL, U.S.A.
Indianapolis IN, U.S.A.
Minneapolis MN, U.S.A.
New York NY, U.S.A.
Philadelphia PA, U.S.A.
San Diego CA, U.S.A.
San Francisco CA, U.S.A.
St. John's NL, Canada
Slight Decreases
Bartlesville OK, U.S.A.
Bellingham WA, U.S.A.
Calgary AB, Canada
Dallas TX, U.S.A.
Denver CO, U.S.A.
Edmonton AB, Canada
Houston TX, U.S.A.
Lake Charles LA, U.S.A.
Phoenix AZ, U.S.A.
Seattle WA, U.S.A.
Toronto ON, Canada
Tucson AZ, U.S.A.
Vancouver BC, Canada