Finding an affordable place to live has become a growing challenge for millions of Europeans. From busy capitals to smaller regional cities, tenants are facing rising housing costs, limited availability and increasing competition for suitable properties.

Recent European rental statistics reveal significant differences between countries. While rents across the European Union increased by an average of 3% between the second quarters of 2025 and 2026, some markets experienced exceptionally sharp increases.

Romania and Croatia recorded the most dramatic changes, highlighting how local housing policies, investment patterns and economic conditions can influence rental prices.

Which Countries Face The Biggest Increases?

Romania recorded the highest annual rental inflation in the EU, with prices rising by 43.5%. Croatia followed closely at 40.1%, while Slovenia registered a considerably smaller increase of 10%.

Finland, meanwhile, reported no annual change in its rental price index.

The contrast becomes even more striking when general inflation is considered. Consumer prices increased by 9.5% in Romania and 4.8% in Croatia, suggesting that rental costs rose substantially faster than other household expenses.

Outside the EU, Turkey recorded a 49.6% increase in rents. However, the country's exceptionally high overall inflation meant that the rise was less dramatic in inflation-adjusted terms.

Serbia, Bulgaria and North Macedonia also experienced noticeable increases, demonstrating that housing affordability concerns extend beyond EU borders.

Why Are Romanian Rents Rising?

Romania's extraordinary figures have attracted attention because they appear unusually high compared with broader economic trends.

One explanation involves adjustments to regulated rents for publicly owned accommodation. Changes to these prices can influence official statistics, particularly when adjustments occur within a relatively short period.

However, housing researcher Dr Adriana M. Soaita of the University of Glasgow has questioned whether public rental housing alone can explain the exceptionally large increase, given its limited share of Romania's housing stock. Newly built apartments, renovated properties and changes in the types of accommodation included in statistical measurements may also contribute.

These factors make it important to distinguish between the national rental index and the actual increases experienced by individual households.

What Is Behind Croatia's Rental Surge?

Croatia's housing market has been influenced by changes to public housing rents, particularly in Zagreb, alongside growing interest in residential property investment.

Apartments purchased for tourism or long-term investment can reduce the number of homes available to permanent residents, especially in desirable locations.

Changes to property taxation have also encouraged some owners to register rental agreements, potentially affecting the composition of official housing statistics.

Interestingly, Croatia's annual rental inflation had slowed to 4.3% by August 2026. This suggests that the exceptionally high earlier figure partly reflected the timing of specific price adjustments.

How Do Europe's Largest Economies Compare?

Rental increases have been considerably more moderate in the EU's largest economies.

Italy recorded annual growth of 3.5%, followed by Spain at 2.5%, Germany at 2.1% and France at 1.6%.

These national figures suggest greater price stability, although conditions can differ significantly between cities and regions.

In popular urban centres, newly advertised apartments may command much higher prices than properties occupied under existing rental agreements. Consequently, official averages do not always reflect the financial challenges facing people searching for a new home.

Why Is Affordable Housing Harder To Find?

Several pressures are contributing to Europe's housing difficulties. Higher mortgage costs have encouraged some prospective buyers to remain in rented accommodation, increasing demand.

At the same time, insufficient construction, population growth in major cities and competition from property investors can restrict available supply.

Short-term holiday rentals may create additional pressure in popular destinations, particularly where residential properties generate greater income from visitors than permanent tenants.

The combination of these factors can make affordable accommodation increasingly difficult to secure, even in countries where overall rental inflation remains relatively modest.

What Can Tenants Expect Next?

Europe's rental market is likely to remain challenging while housing demand continues to exceed supply in many locations.

Expanding affordable housing, encouraging residential construction and bringing vacant properties back into use could help improve availability over time.

For tenants, the latest figures underline the importance of examining local conditions rather than relying exclusively on national averages.

Although rental inflation varies considerably across Europe, access to reasonably priced housing remains a significant concern for households throughout the region.