Rents in the world's largest cities are set to hit record highs in 2025, making megacities less affordable for residents. Demand for apartments is outstripping supply, and rising land and material costs are only exacerbating the problem. Find out which cities have the most expensive rents, what's driving the skyrocketing prices, and how a real estate lawyer can help you protect your interests when buying or renting a home.

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The cost of renting housing in the world continues to grow rapidly. This is influenced by the migration of remote workers, limited supply on the market and record high prices for land and construction materials. As a result, large megacities are becoming increasingly less accessible to tenants, and the situation on the housing market often even leads to social protests in Europe.

Visual Capitalist and Deutsche Bank have compiled a rating of the cities with the most expensive rent in the world. We tell you where in the world you should be prepared for the highest real estate prices in this article.

Rating of the cities with the most expensive rent in the world in 2025

1st place - New York, USA

In 2025, New York topped the list of the most expensive cities in the world in terms of rental costs. The average price of a one-room apartment in the city center is $4,143 per month - 22% more than five years ago. Despite the exodus of workers during the pandemic, demand for housing in the Big Apple remains consistently high thanks to its status as a financial center and active cultural life.

In addition, Deutsche Bank in its study “Mapping the World’s Prices 2025” notes that New York also leads in rental prices for larger apartments (for example, 3-bedroom).

According to Business Insider, in downtown New York, rent for a three-bedroom apartment could reach approximately $ 8,500 per month in 2025.

2nd place – Boston, USA

The average rent here is $ 3,394 (+ 25% in five years). High costs of land and materials make it much more difficult to build new housing, which maintains a shortage in the market. ʼ

3rd place – San Francisco, USA

The cost of renting a one-bedroom apartment here is $3,332, the growth in rent since 2020 was only 1%, but the city retains its position among the most expensive in the world.

4th place – Singapore

Singapore leads the ranking of the most expensive cities for rent in Asia and demonstrates the fastest growth rate – +55%. In 2025, the cost of rent here reaches $3,167 per month.

5th place – London, United Kingdom

The capital of Great Britain became the leader in Europe with a serious cost of renting a one-bedroom apartment of about $2,985 (+39%)

Also included in the top 10 cities in the world with the most expensive rent are:

6th place – Zurich, Switzerland – $2,720 (+35%);

7th place – Los Angeles, USA – $2,613 (+17%);

8th place – Dubai, UAE – $2,401 (+54%) – the city shows the highest cost of renting housing in the Middle East;

9th place – Dublin, Ireland – $2,378 (+26%);

10th place – Amsterdam, Netherlands – $2,358 (+32%).

Among the European capitals, Geneva ($2,330), Copenhagen ($2,021) and Munich ($1,759) also stand out.

In Canada, Vancouver ($1,994) and Toronto ($1,807) remain the most expensive, and in Australia – Sydney ($2,164).

Why is the cost of renting housing increasing? 5 reasons

1. Lack of supply

In large cities, housing construction does not have time to catch up with demand. For example, in New York City, housing construction lags behind job and population growth. In addition, the suburbs and inner cities often have strict zoning restrictions

2. High land and material costs

Rising land, materials, and labor costs are driving up the cost of new housing, which is driving up rents.

3. Investment demand and speculation

Some real estate is being purchased not as a place to live, but as an investment. This is putting upward pressure on prices.

4. Migration and the demand for urban living

Remote work is allowing people to move closer to big cities or to more prestigious neighborhoods, which is increasing competition in the housing market.

5. Income inequality

Price growth is outpacing wage growth in many cities, leading to a higher share of income that people have to spend on housing.

The global rental market in 2025 is characterized by high price growth, especially in cities with limited supply and a large influx of migrants and remote workers. New York, Singapore, London and Dubai remain symbols of rising prices, and the upward trend is likely to continue, increasing social and economic pressure on renters.

Need help from a real estate lawyer?

Buying or renting a home is always a serious step that requires attention to detail. A real estate lawyer will help you avoid risks and protect your interests.

Our services:

- Preparation and review of home purchase and sale agreements.

- Support of transactions when buying or selling real estate.

- Consultations on ownership and lease rights.

- Legal support when investing in foreign real estate.

- Resolution of issues related to utility debts.

We will take care of your safety and peace of mind during any real estate transactions.

Contact Visit World specialists today and get professional advice!

Reminder! In 2025, investing in US real estate remains a profitable instrument, but the market has its risks. We’ve already covered which cities are currently the most promising for buying a home, how high mortgage rates affect profitability, what investors should look out for and what costs to consider before making a deal.

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