The latest Q3 2023 International Rent Index by European rental platform HousingAnywhere, shows rent price increases are gaining traction once again in the third quarter of 2023.

This 21st edition of the Index registers an average quarter-on-quarter (q-o-q) price increase across all property types analysed at 3.1% (versus 1.5% in the previous quarter). Overall, the average year-on-year (y-o-y) price increase across all property types is still 9%, only slightly lower compared to 9.6% y-o-y in Q2.

The Index analyses price developments for rooms, studios and one-to-three bedroom apartments, mostly furnished and in-demand by mobile students and young professionals, in 23 most popular destination-cities across Europe.

In early 2023, q-o-q rent price increases began to slow down, after two years of acute increases. Such post-covid price increases had made rental housing increasingly inaccessible and unaffordable for many. The recent trend of a slowdown in prices may only have been short-lived: Price increases in Q3 have picked up pace during the rental peak season, the time of the year when mobile populations relocate the most.

Djordy Seelmann, CEO at Housing Anywhere, says: “The moderate slowdown of rent price increases at the beginning of the year may have sparked hopes. Nevertheless, we were cautious about being too optimistic, knowing that the peak season for mobility still had to commence. All across Europe, people continue to struggle with the consequences of constrained rental-housing markets. The current spike in prices is just another reminder that now – more than ever – it is essential for all stakeholders in the housing market to focus on meeting the needs of a more mobile society: It is key to develop and establish a sustainable pipeline of rental housing. New buildings are essential, however, allowing more flexible permits that also encourage the re-use and mixed-use of properties can help achieve immediate relief while supporting long-term solutions to become effective.”