Why Does Rent Go Up Every Year?

Rent has been rising for years because of inflation, taxes, rising maintenance costs, and an increasingly heated housing market. It’s not just a slight increase, either: Zillow’s Rent Report for October 2026 shows that rents have increased by 38.5% since the beginning of the pandemic, and they’re up year-over-year in 49 of the country’s 50 largest metro areas. Why would your rent go up even when your apartment hasn’t changed? Read on to find out.

Reasons why your rent may increase this year (or next)

Landlords don’t necessarily need a reason to raise rent on a property they own, but there are many reasons they might. Some increases are simply to keep up with the rising costs of owning property, like property taxes, insurance premiums, and utility expenses. Others may be due to changing local housing market dynamics or the need for upgrades or repairs. 

A 2025 study on the hidden costs of homeownership by Zillow and Thumbtack showed that the combined costs of maintenance, homeowners insurance, and property taxes increased by 4.7% over the previous year. Landlords must either absorb these costs or pass them on to tenants. 

Property taxes 

You might think you don’t need to worry about property taxes as a renter, but landlords often cover this ownership cost, at least partially, by charging you higher rent. In states where property taxes are high — they can run as much as $6,000 a year and often more in some states — those ownership costs can easily translate into higher rents. 

Insurance premiums 

Higher insurance premiums are another way a landlord’s expenses can increase. And boy are they ever higher: Home insurance premiums have grown nationally by 54% over the past five years, according to a 2026 Zillow analysis. Landlords carry a particular type of homeowners insurance for rental properties, and pricing for these policies has risen alongside typical homeowner insurance prices.

Inflation 

As recently as 2022, inflation shot up to 9.1%. While it has settled down into the 3% to 4% range since then, landlords can’t afford not to keep pace with elevated inflation rates — especially when the overall economy is a bit shaky. 

Utilities 

Landlords have a lot of bills to stay on top of, just like anyone else. When the cost of service for water, sewer, trash pickup, and more go up, so do their property expenses, and they might raise the rent to compensate. 

Maintenance 

The same goes for ongoing upkeep, repairs, and preventative maintenance. These costs are expensive, especially for larger rental properties. In addition, labor costs for property managers, handymen, superintendents, and the like tend to increase over time.

Upgrades 

Rental units are subject to the same wear and tear as any other property, and over time they’re bound to need upgrades. Whether the work done is just to keep things operational or to stay competitive with what newer units might offer, landlords are likely to pass the cost along to you to keep turning a profit. 

The local market

Landlords may also need to keep pace with a changing market, particularly if the neighborhood is on the rise and rents in the area are rising accordingly. When market dynamics support higher rents, your rent will likely increase to “market rate.”

Tenant turnover

Even if you don’t live in a huge, multi-unit building, you might not be your landlord’s only tenant. If a landlord owns multiple properties and some are vacant while they make repairs or secure new tenants, they might raise rent on their other properties to make up the loss.

Rent regulation

In a handful of states, rent-regulation laws dictate how much, and how often, the rent on qualifying units is allowed to rise. For rent-stabilized apartments, rents can legally increase by a maximum percentage each year (and usually do).

What is the most a landlord can raise rent?

For most apartments, there’s no legal limit: Landlords can raise the rent as much as they like whenever a lease begins or is renewed. 

For units legally regulated by the state, limits are strict. The 2 main forms of regulation are rent stabilization, which allows modest increases capped at a certain percentage, and the more rigid (and rarer) rent control, which freezes the rent for the existing tenant and permits an increase only when the tenant changes to a new person. Laws and increase caps vary widely by state, and sometimes by city.

Only 8 states, plus Washington, D.C., currently allow some form of rent regulation: 

• California
• District of Columbia
• Maine
• Maryland
• Minnesota
• New Jersey
• New York
• Oregon
• Washington

Can landlords raise rent even if you’re a steady tenant?

Yes, your landlord can raise your rent even if you are a reliable tenant who’s never missed a payment. Some landlords, particularly small ones who know their tenants personally, might cut you a break and keep rent unchanged for a while. Still, the overall cost of living keeps rising, and rent rates will eventually have to rise no matter how good a tenant you are. Many landlords find that small, gradual increases over time are better than keeping rent unchanged for a few years and then instituting a sudden, large increase.

What if I can’t afford the rent increase?

If your rent increase is more than you can afford, or if you can’t afford to pay your rent for any reason, you have options. 

• Talk to your landlord: Be honest, explain your situation clearly, and suggest a compromise if possible. Landlords may be willing to work with a tenant in good standing, though there are no guarantees. 
• Revisit your budget: Take a close look at your monthly budget to see what you can cut or redirect to rent. You might be surprised.
• Know your rights: Renters have legal rights. If you live in a rent-regulated apartment, for example, make sure the rent increase doesn’t exceed local laws.
• Speak with a counselor: The Department of Housing and Urban Development (HUD) offers professional housing counselors who can talk you through your options. They can also help you budget and connect you with other resources that might help.
• Look into housing assistance: Your area may offer financial assistance or grants to help with housing costs. A HUD-approved housing counselor can help you find out if you qualify.
• Search for cheaper housing options: If it comes down to it, you may need to move. Renters in neighborhoods that have become gentrified or suddenly become trendy are often priced out; look into where others are going and see if you can find a better deal.

Will rent ever be affordable again?

Overall, rents keep growing higher: Zillow’s latest forecast predicts that multi-family rents will rise by 2.4% in Q4 2026. 

However, asking rents do tend to shift along with the seasons, meaning rent can be more affordable at some times of year than others. Seasonally, rent prices peak in late summer (specifically August and September) according to Zillow data. Renters who sign or renew a lease in winter tend to get better deals with more affordable terms. In addition, rent may be more affordable in markets with a lot of new construction, because there’s more rental supply than there are renters.

Where are rent prices going down?

According to Zillow’s October Rent Report, rents are only going down in 1 of the top 50 U.S. metro areas: San Antonio, Texas. However, rent growth is up by only less than 1.5% in several more. 

Source: Zillow Observed Rent Index

Final word on landlords raising rent

Even if you’re a perfect tenant, your rent is likely to increase every year for a variety of reasons. These include inflation, property taxes, and other rising costs for landlords. There is typically no cap on how much it can be raised, unless your apartment is subject to rent-regulation laws, which is relatively rare. If you can’t afford the rent increase, have an honest conversation with your landlord and see if you qualify for any assistance or grants before moving to a cheaper option. And if you are considering a move, search Zillow’s rental listings for affordable apartments in your area.