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The U.S. housing market is an ever-dynamic mix of the current demand and supply, economic factors like inflation and interest rates, and governmental directives and policies. These factors contribute to landlords implementing rent increases to offset increasing investments and maintenance costs, and renters are finding themselves at the mercy of these unavoidable rent increases.
As the U.S. housing market sees higher demand for housing and the advanced tools property owners embrace to streamline property management, tenants should prepare for rent surges across the country as early as possible.
In this article, let’s tackle expert advice and insights on the current state of the U.S. housing market, how it affects rent prices, and what tenants can do to prepare for potential rent increases financially.
The state of the U.S. rental market in 2025
Zillow’s January 2025 Rental Market Report shows the typical U.S. asking rent to be $1,968, an increase of 0.2% from the previous month and 3.5% since 2024, primarily driven by single-family rents. Multifamily homes have also recorded a 0.2% increase in asking rent compared to December 2024.
According to the same report, a media household must now allocate at least 29.1% of its income to ensure rent payments, from 26.8% pre-pandemic, showing the difficulty in the affordability of rental homes in the United States. The most affordable areas for rental units in the U.S. are in Austin, Minneapolis, and Salt Lake City. At the same time, the most expensive regions are Miami, followed by New York and Los Angeles.
To prepare for rent increases, we need to understand the causes of rental inflation in today’s economy, as follows:
- Inflation: Inflation decreases the purchasing power of the money we have, and in the rental market, it impacts the cost of goods and services required to build rental homes, thereby increasing the cost of rental housing as landlords pass these costs to the tenants.
- Demand for housing: Landlords are taking advantage of the increased demand for housing compared to the current supply to charge more for prospective tenants.
How renters can prepare for rent increases in 2025
There’s no stopping rent from increasing in the long run, especially with factors as volatile as inflation. Here’s some expert advice on how you can keep your bank accounts ready for rent increases in 2025:
Understanding rental laws and rights as lessees
Here’s the thing: Landlord Joe just can’t knock on your door and demand you pay rent $100 higher than the month before—that’s not how legal rent increases work.
Sometimes, abusive landlords take advantage of unknowing tenants to demand excessive or sudden rent increases and rental scams, and the best way for you to avoid such situations is by equipping yourself with the necessary knowledge on your rights as a tenant, especially when it comes to terms and clauses stipulated in the rental agreements.
With rent control
Rent control means that the government imposes a limit on how much a landlord can charge for leasing out a home, including increases on rentals. This type of arrangement isn’t widespread in the U.S., as it diminishes the quality of rental homes and landlords no longer see it as a profit-generating investment.
Kathryn MacDonell, CEO at Trilby Misso Lawyers, says, “If you are in a state with rent control laws, it is crucial to research your state’s rental limits before entering into a lease agreement, as these can vary from state to state. For example, most rent increases in Columbia cannot exceed 2% plus the Consumer Price Index increases, while in California, the average rent increase is limited to 5% plus inflation.”
Without rent control
Rent increases for states without rent control depend heavily on you and your landlord’s lease agreements. Rent cannot be legally increased in the middle of a term (unless a midterm adjustment is specified in the contract). For a month-to-month, midterm rental, or long-term lease contract, a landlord must issue a 30 to 45-day written notice for the rent increase to give you time to respond or find another housing option.
Understanding your lease contracts is key in helping you prepare for potential rent increases or illegal rent increases. Utilizing organized systems, such as implementing contract management software to store and easily access lease documents, can help you stay informed of your rights and other contractual terms.
Communicating and negotiating with property owners
Nothing beats a good landlord-tenant relationship in preparing yourself for rental increases, and potentially bargaining for a discounted rent increase.
Communication is critical for landlords, especially written ones, when it comes to end-of-term rent increases and any contract-related issues, as this helps properly document data and information that may be useful for contract renegotiations.
Chris Aubeeluck, Head of Sales and Marketing at Osbornes Law, says, “Tenants can prepare for rent increases by properly organizing and documenting contract materials, reviewing contracts, and negotiating terms with landlords. Just as much as tenants find it hard to look for the perfect rental property, it is also challenging for landlords to find tenants who fit their standards and faithfully honor the terms of their contracts.”
If you have a good working relationship with your landlord, why not negotiate for a better rate for your contract renewal? While rent increases are unavoidable due to rising material costs, many landlords would find it better to cut you a discount, rather than finding a new tenant that may not suit them.
Proactively budgeting and financial planning
As unavoidable as rent increases are in a volatile housing market, the best way for tenants to prepare for rent increases in 2025 is to budget and make effective financial plans. For example, a family of four renting a family home may need to reassess priority and non-priority expenses and cut back on non-priority ones to allocate more funds for potential rent increases without breaking the bank.
If you or your family have several debts and find it difficult to adjust to rent increases, try exploring debt relief programs to reduce the burden of monthly debt obligations over a more extended period, freeing up more cash for rent increases.
Here are some other fool-proof ways on how you can kickstart your financial plan to prepare for rent increases:
- Make a budget—and stick to it.
- Track the ins and outs of your money. The only way to keep more money is to ensure you make more than you’re letting out.
- Reduce your spending—every few dollars saved daily by opting for homemade coffee versus commercial coffee is a dollar towards your rent.
Seeking additional income sources
Budgeting and cutting expenses sometimes don’t cut it, especially for individuals and families living from paycheck to paycheck and those barely having extra funds to spare for additional housing costs.
According to Jeffrey Zhou, CEO and Founder of Fig Loans, “As Americans struggle with crippling debt and unstoppable inflation and housing costs, part-time jobs aren’t anymore an option but a necessity. The U.S. Bureau of Labor Statistics reports a 227,000 increase in part-time workers from April 2024 to April 2025, showing the increasing trend and need for part-time jobs due to economic reasons, like paying for rent increases.”
To financially prepare for rent increases, explore additional income sources to help them fund these extra costs. With the rise of work-from-home and virtual work opportunities, finding a part-time job and extra income isn’t as difficult. Here are some trendy and in-demand part-time jobs to consider in 2025:
- Virtual assistant
- Customer service
- Barista or bartender
- Babysitter or childcare provider
- Tutor
- Freelancer
- Language instructor
- Delivery rider
- Social media influencer
- Retail work
Outside of typical part-time jobs, you could also explore opportunities to design and sell custom t-shirts online, allowing you to earn additional revenue from art and eCommerce sales. Many free graphic design platforms allow professional and beginner artists to create designs for their custom print business.
Researching other housing options
Many landlords impose inflexible rent increases, making it impossible for current tenants to stay. When this happens, tenants need to have backup housing options that fit their current budget and finances:
Get a roommate
If this is an option for you and your landlord, why not try looking for a roommate? Having a roommate allows you more flexibility in rental and utility payments as you can split costs with someone else in exchange for shared house or apartment space.
Seek other properties
When you’ve exhausted all your options to stay at your current accommodation, then maybe it’s time to go. Looking for alternative properties that fit your budget is your best action to avoid falling for financial traps from rent increases, no matter how cool or perfect your current place is. Ensure a move-in essentials checklist is ready for your new home to reduce move-in costs.
Conclusion
Rent increases are realities that all home renters need to deal with, especially inflation and the unstable U.S. housing market. While there is no way to tell how often or how high these rent increases could go, renters should take proactive action and measures to prepare for these costs—from sufficient knowledge of tenant rights, negotiating with the landlord, proactive financial planning, additional income sources, or alternative home options.
With the right tools, knowledge, and options, renters can ensure that their right to a home is protected and not abused, despite the demand for increased rent.
