Rent increases are a thorny issue for tenants and landlords alike. Naturally, tenants want to be able to afford their homes without being left to pinch pennies. At the same time, landlords sometimes need to adjust their rate to keep up with rising costs, regulations, and other factors. With that considered, what is a reasonable rent increase in 2025? Let’s break it down below.
Main Takeaways:
- The average rent increase is 3 to 5%. In Baltimore, the average apartment cost has risen 2.4% since the last year, 5% lower than the national average.
Factors Influencing Rent Increases in 2025
Rent increases may seem random, but there are real, tangible factors at play that make them happen. Landlords may be forced to raise the rent because of everything from the broader economy to local housing trends. Events going on in your local and national community can trickle down to the rental rate. With that said, just what is a reasonable rent increase in 2025? Our property management in Baltimore will break down what’s driving rent increases right now.
Economic Conditions and Inflation
As you can imagine, inflation affects everything it touches. And believe it or not, landlords are being hit by it, too, firsthand. They have to juggle property upkeep, taxes, and service fees that just keep piling up with no end in sight. As such, if inflation continues, they may have no choice but to offset some of those costs. Without doing so, they may not be able to pay for maintenance, utilities, and other critical features that keep your home habitable.
Housing Demand vs. Supply
Right now, the demand for housing is massively outpacing its demand. In that vein, the competition among renters can drive up costs.
Local Market Conditions
Where you choose to live impacts how much of a rent increase you might face. In Baltimore, MD, for example, certain areas are seeing sharper increases than others. Neighborhoods like Federal Hill and Canton have experienced significant rent hikes, with average rents for one-bedroom apartments surpassing $2,000 per month.
In Baltimore’s case, this spike happened because of the location’s current spike in growth. To elaborate, areas in Baltimore, like Canton, are undergoing many changes and improvements. In turn, this draws people to those spots. Luckily, neighborhoods in the process of rebuilding or development might have more stable rent prices, or even possibly go down a bit.
Government Policies
Rent control laws, housing subsidies, and tenant protection policies can slow or limit certain areas’ rent hikes. Some cities have strict rules on how much landlords can increase rent, while others allow for market-driven pricing. So, keep an eye on local policies—they could change the game for you.
How Much the Rent Is Rising Across the U.S.
National leaders like Redfin and Azibo agree that the average rent increase is 3-5% a year. However, with issues like inflation and housing shortages brewing, many places’ rental rates have ballooned way past that range. Furthermore, the pandemic’s ripple economic effects are likely still being felt, as rent prices are still 33.1% higher than they were before Covid. All in all, here are two factors to pay attention to:
-
Metro Cities: According to NerdWallet, 47 out of 50 metro US cities’ overall rent prices have gone up in the past year. For example, Cleaveland, OH’s average rental rate has jumped to 7%, Providence, RI’s has gone up 6.2%, and Chicago, Il’s has risen 5.8%. With all the intense competition to live in these urban locations, landlords and tenants should expect big rent increases to stay for the time being.
- Single-Family Housing: Of course, rates can vary by housing type, such as single vs. multi-family housing. On a national level, single-family housing rates have grown 4.4% in the past year. On the other hand, multi-family’s spike has been almost half that, just 2.4%. What’s more, multi-family housing rates have actually gone down a bit in a few areas, like Raleigh, N.C., and Pheonix, AZ. So, tenants and landlords alike may want to keep that in mind as they navigate rent increases.
How Baltimore Compares
From here on, we’ll focus on what a reasonable rent increase means for our Baltimore residents and landlords.
Again, while the average U.S. rent increase falls between 3-5%, it looks a little different for Baltimore. According to Apartments.com, the average rent in Baltimore has risen 2.4% in the past year, 5% lower than the national average. For reference, according to the national average, an apartment costs $1,555 to rent per month, but in Baltimore, it costs $1,479.
This is a win-win for tenants and landlords alike. Tenants can enjoy slightly lower rent increases than the national rate. Furthermore, they can get a better idea of what rent increases might look like in the future so they can plan ahead.
Meanwhile, landlords can rest assured that, when they make the difficult move to increase the rent, it is actually a bit more reasonable than what’s going on elsewhere. Also, understanding the broader rental landscape can help them balance two critical priorities: setting competitive rents that align with market trends while also being mindful of tenants’ budgets.
Legal Regulations on Rent Increases in Baltimore
Whether you’re a landlord or tenant, you should turn to Baltimore’s regulations to ensure you’re legally complaint and protected. So, let’s walk through Baltimore’s rent increase laws for a clearer picture.
Rent Increase Notices
Surprisingly, Baltimore (and Maryland) has no set rent increase caps. However, in 2023, regulations passed that order landlords to provide rent increase notices certain days ahead of time. More specifically:
- If the tenant has been in their unit for over a month, Maryland landlords must give 90 days’ written notice of a rent increase.
- If the tenants’ term is longer than a week but shorter than a month, the landlord must give them their written rent increase notice 60 days before it takes effect.
- If the tenants’ term began a week or less ago, and they have a written lease, the landlord must provide a written rent increase notice 7 days beforehand.
- If the tenant’s term began a week or less ago, and they don’t have a written lease, the landlord must provide them with a written notice of rent increase at least 21 days before it happens.
Times Rent Increases Are Illegal
Baltimore tenants have specific rights, and rent increases are no exception. In particular, they are protected from unfair rent hikes under certain circumstances, such as:
- Protection Against Discrimination:
Landlords cannot tack on a rent increase based on your race, color, religion, national origin, sex, disability, familial status, marital status, gender identity, sexual orientation, or source of income.
For example, a landlord cannot give their married tenants a rent increase as they let unmarried ones off the hook. In doing that, the landlord is treating the married tenants differently based on their marital status. Legally, that counts as discrimination.
- Protection from Retaliation
If you’ve made a complaint about the property or exercised a legal right (like requesting repairs), landlords are not allowed to retaliate with a rent increase. This includes increases within a short period after complaints or requests. If you have reason to believe that has happened, you might want to think about taking next steps.
- Protection from Rent Increase Without Sufficient Notice
As we went over earlier, landlords cannot spring rent increases on you without the legally ordained prior notice. If they do, that is plainly illegal.
If any of the above these issues persist, you could contest them with your landlord, report them to the Baltimore City Department of Housing and Community Development, or worst comes to worst, take legal action.
Need Guidance on What a Reasonable Rent Increase in 2025 Is for You? Let’s Talk!
For landlords, knowing what is a reasonable rent increase in 2025 can be tricky—go too high, and you risk losing tenants; stay too low, and you might not cover your expenses. And the same goes for tenants: they certainly don’t want their landlord to have more on their plate than they can shoulder, but as renters, they still need to make ends meet themselves.
That’s why we’re here to help everyone balance their needs and find a workable solution. At Bay Property Management Group, we can measure whether your rent increases are in line with what the rest of the rental market is charging, while also tapping into the tenant voice to ensure they’re satisfied. And that’s not all we do. We handle maintenance, repairs, rent collection, tenant communications, accounting, and countless other landlord responsibilities on landlords’ behalf. This way, landlords can run their business more efficiently, and tenants can have a smoother time in their rental. Call us today or look at our listings to simplify your rental experience!
