Across Europe, rising relocation rates are creating a sharp imbalance between surging rental demand and limited available housing, according to new data from digital investment platform InRento. In Lithuania, the foreign worker population surged from under 7,000 in 2020 to 170,600 today, rapidly expanding the renter pool and putting immediate pressure on available housing.
Similar patterns are emerging across the Baltics, Poland, Romania, Finland, Italy, and Ireland, markets that once comfortably matched supply with demand but are now struggling to absorb sudden inflows of workers.
“Nobody buys an apartment in month one,” said InRento’s CEO Bernardas Preikšaitis. “They rent for a year or two, get to know the city, and only then decide whether to stay.”
Meanwhile, a strong relocation reputation acts like a signal flare, drawing newcomers who overwhelmingly reside in rental housing. And when thousands arrive at once, rents react quickly.
In 2025, rents in Lithuania’s capital, Vilnius, rose 3 per cent, with a 3 to 6 per cent outlook for 2026, driven largely by international workers. And more pressure is already building: Germany reportedly plans to station 5,000 soldiers and their families near Vilnius by 2027, adding another wave of demand to an already stretched rental market.
Institutionally owned apartments
In markets dominated by small private landlords, Preikšaitis argues that large‑scale, professionally managed development is essential to restoring balance. Poland—one of the region’s most advanced rental markets—still has only 30,000 institutionally owned apartments, representing just 0.1 per cent of national housing. Lithuania and Romania have even fewer, leaving most renters dependent on individuals with one or two extra flats.
“The real enemy of tenants isn’t the institution, it’s scarcity,” Preikšaitis said. “Professional landlords build and renovate at scale, offer longer leases, meet energy rules, and keep units available for decades.”
This scarcity becomes more visible in markets with limited rental depth. While some European countries can absorb mobility with minimal disruption—Finland, for example, has one‑third of its housing stock in rentals and enough supply to respond quickly—others feel the impact far more sharply. Poland’s rental sector is expanding but remains volatile, adjusting in quick, uneven bursts as demand rises. Romania and Lithuania, where homeownership exceeds 89 per cent, have rental markets too small to respond when large numbers of newcomers arrive at once.
The bottom line, according to Preikšaitis , is that supply determines outcomes. Expanding that supply broadens who benefits from rising demand and strengthens the housing stock cities urgently need.
