Romania and Croatia face the steepest rent hikes in Europe
Rent growth in the EU averaged 3% last year, but Romania and Croatia saw the sharpest increases, far outpacing overall inflation.
Between the second quarters of 2025 and 2026, EU rental payments grew by 3%, yet Romania recorded the largest increase, with Croatia close behind. Romania’s rise is officially tied to higher administered rents, but scholars argue that public housing represents a tiny share of the market and that new or renovated units may be driving the surge. In Croatia, local authorities in Zagreb lifted social-rent levels, and a growing share of apartments are being bought as investment assets rather than homes, many remaining vacant until taxed in 2025.
The influx of higher-quality units into the rental sector has pushed average prices up sharply. Turkey, when included, posted the highest rent inflation among non-EU states, but its rise was more gradual. Across the continent, competition for limited rental stock continues to fuel price growth, especially in major cities.
Why it matters
Sharp rent hikes strain household budgets and highlight housing market imbalances in Europe.
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