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

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 second quarter report for Europe here. You can also subscribe to our newsletter to get our reports and other industry news right to your inbox.