What is the primary driver behind the price surge in the North American rental market post-COVID-19?

The primary driver behind the price surge in the North American rental market post-COVID-19 is higher demand caused by market shifts. As the pandemic prompted significant changes in living patterns, many individuals and families reevaluated their housing needs, leading to an increased demand for rental properties. Factors such as remote work and a desire for more space or different living environments contributed to this shift.

Additionally, urban-to-suburban migration became a notable trend, as people sought more spacious accommodations that were previously less attractive. This influx of demand, coupled with a relatively limited supply in many markets, naturally resulted in rising rental prices.

While government incentives and changes in foreign investment dynamics can impact the real estate market, they did not serve as the primary catalyst for the surge in rental prices. Instead, the fundamental shifts in demand patterns stemming from the pandemic created a much larger impact on the rental landscape. Increased inventory has also not been a significant factor; in fact, in many areas, inventory constraints have exacerbated the demand-supply imbalance.