Trump's Tariffs Could Send Rents Higher, Economist Warns

A new report from Redfin Corp. RDFN released Monday showed that rents remained relatively stable last month. However, economists warned that President Donald Trump's tariffs could put upward pressure on the rental market. 

The Details: According to the Redfin report, the median U.S. asking rent declined 0.6% year over year to $1,610 in March while edging up 0.4% month over month.

This marks the thirteenth consecutive month of rent stability, with annual changes remaining below 1% since early 2024. 

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Rents remain 5.6% below their 2022 peak of $1,705 as the market re-balances from post-pandemic construction surges and persistent demand. 

However, Redfin economists warned that the ongoing trade war could disrupt the stability in the market. 

“America gets a lot of building materials from other countries, so tariffs will make building apartments more expensive. That could further hamper apartment supply, causing rents to jump,” said Redfin Economics Research Lead Chen Zhao. 

Tariffs could also increase demand by increasing rent if people choose to rent rather than buy amid the economic uncertainty. 

"Tariffs have already caused huge swings in the stock market, and they will lead to higher prices for many goods and services, along with increased unemployment,” Zhao added. 

Redfin agents also reported that heightened economic concerns push some households to prioritize renting over homeownership.

A Redfin agent in Northern Virginia shared that one client is considering selling their home and renting temporarily due to fears of job loss linked to federal workforce reductions under Elon Musk's DOGE cost-cutting initiatives. 

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