Rental Prices in 2025: Key Trends and What’s Next

Rents in France continue their ascent in 2025, straining household budgets in a rapidly transforming real estate market. With an average cost of 723 euros per month including charges, the increase reaches 3.3 % compared to 2024. This phenomenon, which extends across the entire territory, does reveal significant disparities between major metropolitan areas and more affordable cities. While some areas experience a surge in prices, others remain more accessible. What are the factors behind this rental inflation and which cities are the most affected?

Greater rent disparities between cities

The national average rent reaches 17.03 euros per square meter, but this figure hides significant disparities between cities. Paris tops the ranking, with a price per square meter of 38.7 euros, far higher than other major metropolitan areas. With a monthly budget of 723 euros, a Parisian tenant must settle for a 15 m² studio, whereas in Bordeaux, they could afford 25 m², and in Rouen, 54 m². Conversely, at the lower end of the spectrum, Saint-Étienne has the most affordable rents, averaging 10 euros/m², making it one of the best options for tenants, at a time when the rental real estate market in France is on the brink of collapse.

Some cities are experiencing a spectacular surge in rents. Rennes and Orléans are among the most affected, with respective increases of 7.25 % and 6.24 % over a year. Furthermore, this progression reflects a growing real estate pressure in these particularly attractive areas. Demographic growth, the arrival of new businesses, and economic dynamics amplify rental demand, while housing supply struggles to keep up. Under these conditions, prices are rising rapidly, making housing access increasingly difficult for low-income households and young professionals.

The Reference Rent Index on the rise, a domino effect on existing leases

While the tension between supply and demand largely explains the rise in rents, another element exacerbates this dynamic: the revaluation of the Reference Rent Index (IRL). Set by Insee, this index, used as a legal basis for rent adjustments, shows a progression of 2.47 % over a year. This increase directly impacts tenants, since landlords can adjust their rents according to this index. Thus, a lease indexed to the IRL at 500 euros per month sees an increase of about 150 euros per year, which weighs heavily on household budgets.

However, these adjustments are regulated by law. The legislation of July 6, 1989, prohibits landlords from increasing a rent beyond the variation of the IRL and imposes a one-year notice period to notify the tenant. Despite these safeguards, the effects of this revaluation remain significant, particularly in tight areas where rents are already high. For many households, each adjustment slightly diminishes their purchasing power and exacerbates the difficulties of finding housing in large cities where demand far exceeds the available supply.

In a tight rental market, the erosion of households’ real estate purchasing power seems inevitable. To curb this spiral, the state could extend rent caps, already applied in some metropolitan areas. But will these measures be sufficient to contain the surge in prices in the most attractive cities? If housing supply remains insufficient, landlords may tighten tenant selection criteria and require stricter guarantees. Faced with these constraints, some households are turning to medium-sized cities, where the boom in real estate investments opens new prospects. This trend could, in the long term, rebalance the real estate market and redraw the housing map in France.