Following the pent-up demand of 2020, the U.S. rental market is currently very competitive with prospective tenants outnumbering available rental properties. This imbalance has led to increasing rental rates across much of the U.S. when compared to pre-COVID levels, impacting both houses and apartments. Here we discuss the key challenges, what Cartus is doing to overcome them, and the best practices organizations can follow to help reduce the impact on their mobility programs.
When scheduling rental tours, give at least 3-4 weeks’ notice and 3-6 months to secure a property
Stagger groups of renters moving into one location so they are not all competing with each other for limited inventory
Low availability in the U.S. rental market is being exacerbated by a number of factors. Prospective landlords are choosing to sell their investment homes rather than rent them out, in order to take advantage of the current demand and low interest rates within the real estate market. In addition, as many people have been given the option to work from home, house sales continue to rise to unprecedented levels in some areas of the U.S., which has reduced available rental stock further. At the same time, other homeowners are selling their properties for profit and renting until house prices settle, which is adding to the already overcrowded rental market.
As the pandemic continues to impact supply chains (international and domestic), delays in construction material deliveries has meant a lack of new homes being built. Leading U.S. property management companies estimate the U.S. real estate market’s supply-demand imbalance will drive up rental rates 4% to 5% in key markets this year.
States such as California are particularly challenging with property viewings hard to secure because entire apartment blocks are completely occupied until early October. In these instances, prospective renters are asked to join a waiting list in case of early vacancies.
Download our Mobility Supply Chain Guide to find out the specific challenges impacting the wider industry, what Cartus is doing to mitigate them, and key recommendations to help companies reduce the impact these challenges have on their relocation programs. Our guide looks specifically at:
Look out for more blogs over the coming weeks, which will deep-dive into specific areas of supply chain and the innovative solutions we are providing to help clients navigate the current challenges. Read our previous posts:
Cartus will continue to work closely with our supplier partners to ensure we minimize the impact this situation may have on our clients and their relocating employees.
Thank you to our supplier partners, Coldwell Banker Realty, Dwellworks, and National Corporate Housing for contributing to this blog post.
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