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Redfin: Tariffs Could Spur Apartment Rent Increases
The median U.S. asking apartment rent price fell 0.6% year over year to $1,610 in March, and rose 0.4% month over month, Redfin said Monday. March was the 13th consecutive month in which asking rents barely decreased or increased, with a year-over-year change of less than 1% during each of those months.
Although Redfin economists have argued for months that it’s only a matter of time before rents tick up again due to slowing apartment construction, a new twist could expedite the process: tariffs.
“America gets a lot of building materials from other countries, so tariffs will make building apartments more expensive,” said Redfin economics research lead Chen Zhao. “That could further hamper apartment supply, causing rents to jump. Tariffs could also drive up rents by increasing demand. People may opt to rent instead of buy homes because the turmoil around tariffs has fueled widespread economic uncertainty.”
Redfin reported last week that the affordability gap between buying and renting is widening, with homebuyers now having to earn $116,633 per year to afford the median-priced home for sale, compared to $64,160 to afford the typical apartment rent.
- ◦Development
- ◦Economy
