Which European countries are hit the hardest by annual rent inflation and why? - Yahoo Finance UK

Rents continue to rise across Europe, and some countries are particularly affected. In many European nations, rent increases are outpacing overall inflation, and households in Romania and Croatia have been hit especially hard by recent rent increases. So, what factors are driving the recent rise in rents, and why do Romania and Croatia stand out as outliers within the EU? Between the second quarters of 2025 and 2026, actual rental payments for housing rose by 3% in the EU. Rent inflation ranged from zero in Finland to 43.5% in Romania, closely followed by Croatia at 40.1%, according to Eurostat. Overall inflation was 9.5% in Romania and 4.8% in Croatia over the same period. After adjusting for inflation, rents rose by more than 30% in both countries.