MODERATE IMPACT

How does the Iran war affect renters?

Quick answer: Renters face a double squeeze: landlords passing through higher energy and maintenance costs, plus reduced new housing supply as construction costs rise. If mortgage rates stay above 6%, fewer people buy homes, keeping rental demand high. Utilities included in rent may lead to mid-lease surcharges in some areas.

Last updated: 2026-03-13

How the war affects rent prices

The Iran war creates upward pressure on rent through multiple channels:

Direct costs landlords pass through:

  • Higher heating and cooling energy costs
  • Increased property insurance premiums
  • Rising maintenance and repair costs (building materials up)
  • Higher property taxes as assessed values change

Indirect effects:

  • Mortgage rates above 6% keep more people renting instead of buying
  • Fewer new apartments being built as construction costs spike
  • Reduced housing supply = higher rent competition

What renters should know

  • Review your lease: Check if your landlord can add energy surcharges
  • Utilities-included leases: May see mid-lease adjustments in some jurisdictions
  • Renew early: Lock in current rates before next increase cycle
  • Energy efficiency: Reduce your share of utility costs with simple measures
  • Renter assistance: Check local programs for utility bill help

Rent increase timeline

Rent increases typically lag 3-6 months behind an economic shock. Expect the Iran war’s effects on rent to show up in summer-fall 2026 lease renewals.

Sources: Newsweek, Somners