President Donald Trump's tariffs could affect rent prices in several growing markets, according to a new report from Realtor.com.
According to the report, average rent prices have fallen $65 per month in the last three years as inflation has subsided. But the report suggests that several growing markets could prices go up again.
President Trump's 25% tariffs on steel and aluminum imports could drive up the cost of newly built residences. Those costs, Realtor.com, could be passed along to consumers. The report also suggests some builders might opt not to go through with finishing construction due to increased costs.
RELATED STORY | Half of US renters are 'cost-burdened' by their housing
The report suggests that Milwaukee, Oklahoma City and Memphis, Tenn., are having the fastest growth in permitted multifamily homes.
Six other markets – Cleveland, Columbus, Atlanta, Cincinnati, Birmingham and San Diego - could also face increasing rents.
"While the median asking rent is down $65 monthly or over $700 annually, in nearly every major U.S. metro rents are still considerably higher than 2019," said Joel Berner, senior economist at Realtor.com. "We have seen declines in rents largely due to robust multi-family building and permitting adding more rental options in many metros. This tailwind is currently under threat as developers grapple with the short-term and long-term impacts of new and evolving tariffs on building materials. For renters in cities with declining rents, it might be a good time to lock in a good rate for the next year or beyond."
The report notes that even markets that aren't growing could be impacted the tariffs, "As rising construction costs could further dampen new development plans, restricting supply and continuing to exert upward pressure on rental prices," said Berner.
Realtor.com says the average cost of monthly rent in March 2025 was $1,694.
