On average, rent increases by about 3% to 5% per year in many places, which is considered a typical range for landlords to cover rising costs and market changes. In high-demand metropolitan areas, this increase can be higher but rarely involves drastic spikes unless there are significant property upgrades or shifts in the market. For example:
- In the U.S., the average annual rent increase is around 3% to 5%.
- Some cities have experienced higher increases in the range of 6% to 8% recently.
- In 2024, the nationwide average rent increase was about 0.8% as growth moderated, but certain cities like Columbia, SC, saw increases as much as 8%.
- Some other cities have even seen increases above 7% year-over-year as of 2025.
- Dutch regulations for 2025 set maximum rent increases ranging from about 4.1% to 7.7%, depending on the rental segment.
In the UK, average private rents increased approximately 6.7% in the 12 months leading to June 2025. So, while the standard and average annual increase hovers around 3-5%, local market conditions, inflation, and rent control laws can cause variations ranging roughly between 0.8% and 8% or slightly higher in some cases.
