Rent increases in North Carolina can be a significant concern for tenants, especially in cities experiencing rapid population growth and rising housing costs. In 2025, tenants in the state continue to face a unique rental market shaped by the statewide ban on rent control.
This article will guide you through the key aspects of North Carolina’s rent increase laws, what tenants need to know, and options available for managing large rent hikes.
NC’s Ban on Rent Control
In 1987, North Carolina passed a law banning rent control statewide. This means that local governments, including cities and counties, are prohibited from enacting rent control policies, even if they believe such policies would help protect tenants from rising rents.
North Carolina is one of 38 states that restrict or ban rent control laws, which aim to stabilize rental prices and prevent exorbitant rent hikes.
The rationale behind this law is that rent control can negatively affect the housing market by discouraging new construction and maintenance of rental properties.
While rent control policies aim to make housing more affordable by limiting rent increases, critics argue that these laws can lead to housing shortages and the deterioration of rental units over time.
The Debate: Arguments for and Against Rent Control
Arguments For Rent Control
Supporters of rent control argue that it helps keep housing affordable in markets where rents are rising rapidly. By limiting how much landlords can raise rents each year, rent control ensures that tenants have stability and predictability in their housing expenses. This is particularly important in cities where housing demand exceeds supply, leading to higher rent prices.
Rent control also protects long-term tenants from eviction due to significant rent increases, offering a safeguard for low-income residents in gentrifying areas. It promotes community stability by encouraging people to stay in their homes without the fear of being priced out.
Arguments Against Rent Control
On the other hand, critics argue that rent control can harm the housing market. By limiting rent increases, property owners may have fewer financial incentives to maintain their properties or invest in new construction. As a result, the quality of rental units can decline, and new rental housing may be less likely to be built.
Furthermore, rent control can create shortages in available rental units. With fewer landlords willing to rent out properties or build new ones due to limited profits, renters face reduced options, often leading to higher rents in the non-regulated market.
Rent Control in Other States
While North Carolina bans rent control, other states like Oregon and California have embraced rent regulation in various forms. Oregon passed a statewide rent control law in 2019, limiting rent increases to 7% plus inflation each year.
California allows local governments to impose rent control, with cities like Los Angeles and San Francisco capping rent increases at 10% annually.
New York City has the longest-standing rent stabilization system, where over a million units are subject to rent caps. Despite the benefits, critics argue that rent control can stifle economic mobility and create inefficiencies in the housing market.
Recent Efforts to Change NC Rent Laws
In recent years, there have been legislative efforts to repeal North Carolina’s statewide ban on rent control. In 2019, a bill was introduced to allow cities and counties to enact rent stabilization policies. However, this bill did not advance, and the statewide ban remains in effect.
Despite ongoing debates and rising rent prices in cities like Raleigh, Charlotte, and Asheville, the Republican-controlled General Assembly has opposed such changes, arguing that rent control would discourage investment and hurt the real estate market.
Advocates for rent regulation continue to push for local control to help address housing affordability, but for now, the ban remains firmly in place.
How Landlords Can Raise Rents in NC
In North Carolina, landlords have significant freedom when it comes to raising rents. There are no statewide limits on rent increases, and landlords can raise rent as much as they want when a lease expires or when a new tenant signs a lease.
The only legal requirement is that landlords must provide written notice of the rent increase: typically 30 days for month-to-month leases and 60 days for annual leases.
It’s important to note that landlords cannot raise rent during the term of an existing lease unless the lease specifically allows for rent increases, which is rare. Therefore, tenants are protected from rent hikes during their lease period but should be prepared for potential increases once their lease ends.
The Legal Gray Area of “Inclusionary Zoning”
Some North Carolina cities have adopted inclusionary zoning policies, which require developers to include affordable housing units in new construction projects.
These policies aim to provide a mix of affordable and market-rate housing, ensuring that lower-income residents have access to decent housing. However, some critics argue that these policies may violate the statewide ban on rent control by effectively limiting rent prices on a portion of units.
While inclusionary zoning does not directly impose rent caps, it can create affordable housing options within markets where rents are rising rapidly. The legality of these policies is still debated, and it remains unclear how courts will rule on this issue in the future.
Options for Tenants Facing Large Rent Hikes
If you receive notice of a significant rent increase, you have a few options:
Negotiate with Your Landlord
Try to negotiate with your landlord to keep the rent increase manageable. Emphasize that you’re a reliable tenant and offer to sign a longer lease if they reduce the rent increase. You can also check the market rate for similar units to ensure your increase is in line with local rents.
Look for a More Affordable Unit
Start searching for a less expensive rental in the area. You may find that rents vary widely even within the same neighborhood. If possible, consider downsizing to a smaller unit or one with fewer amenities to save on rent.
Understand Your Lease Terms
Review your lease carefully to determine whether the landlord is legally allowed to raise the rent at this time. If you have a fixed-term lease, rent cannot be raised during the lease period. Make sure you understand your rights before agreeing to the increase.
Outlook for Rent Control in North Carolina
Rent control remains a contentious issue in North Carolina. While some local officials and advocacy groups continue to call for rent stabilization policies to address rising housing costs, the state’s ban on rent control is unlikely to change in the near future due to strong opposition from real estate and development groups.
As the debate continues, tenants will have to navigate a rental market where rent increases are not regulated, and rent hikes can occur without limit.
North Carolina’s statewide ban on rent control means that tenants have no protection from rent increases beyond what is outlined in their lease agreements. Rent hikes are a reality in the state’s rental market, particularly in high-demand cities like Raleigh, Charlotte, and Asheville.
Although the rent control debate continues, for now, tenants must be proactive in managing rising rent costs through negotiation, careful lease review, and exploring affordable housing options.
