Since the beginning of the year, the rental market has seen a surge in demand. The response rate to listings has increased by 26% compared to February 2024. After a noticeable decline in the autumn-winter season, supply is also steadily recovering. In February, the rental listing base grew by 5% month-on-month. The key question remains: will this upward trend continue in March, or will it slow down after the first two months, as it did last year?
At the end of February, renters had 25,300 available listings to choose from. Of this total, 66% (17,000) were located in Poland’s seven major cities. Looking at the market as a whole, the most significant supply rebound compared to January was observed in Zielona Góra, with a 65% increase. Meanwhile, only Łódź and Tricity recorded a slight contraction in available listings, each down by 2%.
Although supply grew month-on-month, a year-on-year comparison reveals a 7% decline. This is partly due to 2024’s record-high rental availability, which set a high comparison base. However, supply trends vary across the country. In Olsztyn, the number of listings dropped by 38% year-on-year, whereas in Katowice, supply increased by 21%.
The persistently high supply throughout most of 2024 effectively slowed down rent price growth. Over the past three months, rental rates have not just risen at a slower pace but have actually started to decline. The key factor in determining the future trend will be developments in March. If rental availability decreases while demand remains high, it could mark a turning point in the current supply-demand relationship, signaling the end of price stability or declines, explains Milena Chełchowska, an analyst at Otodom.
Rental Motivations – Between Financial Constraints and Preferences
Although the number of searches for rental apartments based on specific size and room count decreased by 6% compared to January, reaching 49,200, year-on-year data shows a 4% increase. The response rate to listings is also significantly higher than last year, up by 26% (331,000 interactions).
According to the report “Happy Home. To Have or To Be in Housing”, renting in Poland is primarily dictated by financial constraints. As many as 75% of surveyed non-homeowners stated that they cannot afford to buy property. Among them, 41% lack sufficient creditworthiness, while for approximately 1 in 8 respondents (13%), renting is a temporary stage, with property ownership as a future goal. Only 10% of non-homeowners claim that renting fully meets their needs.
Those searching for rentals most often look for two-room apartments over 40 square meters, making up 22% of all rental searches on Otodom. The second most common preference (15%) is smaller apartments over 30 square meters but still with two rooms.
What rental costs should tenants expect? The highest rents are in Warsaw, averaging 4,949 PLN/month, and Kraków, at 3,273 PLN/month. Meanwhile, the lowest average rental rates are in Kielce and Białystok, at 2,017 PLN/month and 2,065 PLN/month, respectively.
In February, the average asking rent was 3,600 PLN, marking a 1% decline from January. The most notable rent increases were recorded in Bydgoszcz (+2.6% month-on-month), while prices in Zielona Góra fell by 3.3% month-on-month, stabilizing after the dynamic year-on-year increases observed in previous months. At the same time, residents of the Lubusz Voivodeship, whose capital is Zielona Góra, report one of the highest levels of satisfaction with their place of residence in the country (8.23/10). This shows that the value of a location is not solely measured by prices but also by quality of life and well-functioning, happy communities, adds Milena Chełchowska.
Source: Manager Plus
