Rents are rising around the U.S., on average 12% nationally, though in many metropolitan markets, the increase has been considerably higher. The lack of new construction of multi-family units creates a shortfall in availability, while potential home buyers who have been priced out of the market and are now looking to rent drives demand. The competition for rental units has resulted in a landlord’s market with little flexibility around negotiating lease terms and conditions.
Expect the rental market to continue to be problematic, requiring transferring employees to make quick decisions or lose the chance to secure a desired property. The short-term rental accommodation market was also adversely affected by the pandemic with several providers leaving the business or letting their inventory go, contributing to the tight supply.
New construction of multi-family housing projects is underway. Supply chain challenges may delay their availability, but the current expectation is that the rental market will achieve some level of equilibrium.
Don’t try to stop your transferring employees from conducting internet searches on their own. But if your mobility program provides professional rental assistance, do encourage employees to utilize those services to streamline the process of finding a new home and settling-in. You’re not forcing corporate choices on them; you’re empowering them to delegate vetting of properties to make the search more efficient.
There has been some shift in transferring employees exploring areas near cities but not necessarily in the city to find rental accommodations with more space. You will see this when employees are either Working from Home or are in a Hybrid work situation. Many mobility teams are navigating the writing of Remote Work policies to manage this change in workforce dynamics.