Apartment rents are showing signs of stabilizing after 13 months of little change in either direction. But now, as the threat and imposition of tariffs kick in, that stability could be threatened.
As construction of new apartments has slowed in the face of oversupply, demand is beginning to catch up, raising the likelihood of higher rents. That is good news for landlords. But a new report from Redfin suggests a less welcome reason rents could rise: if the added costs of construction driven by new tariffs suppress new apartment supply. The current economic turbulence could also steer people into renting instead of buying, especially as homes become less affordable for average households. This could push rents up.
“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,” commented Redfin economics research lead Chen Zhao.
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Nearly a quarter of America’s softwood lumber—a key material in building apartments—comes from Canada. Yet the U.S. Department of Commerce recently outlined plans to more than double the current tariff on Canadian softwood lumber later this year, to 34.45% from 14.4%, Redfin noted, adding that other types of tariffs are also being considered. That could affect widely used building materials from China, Mexico and other countries.
Meanwhile, rent trends vary from state to state and metro to metro. The median rent nationwide in January 2025 was $1,610, still below its August 2022 peak of $1,705, and down 1.1% annually for median asking rent per square foot.
Nationally, the median asking rent for 0–1-bedroom apartments fell 0.9% year-over-year to $1,467. For two-bedroom apartments, it decreased 0.5% to $1,690. And for three-bedroom apartments, it fell 0.4% to $1,997—the smallest decrease in months, Redfin reported.
On an annual basis, the median asking rent per square foot spiked 12.4% in Louisville, 8.6% in Cleveland, 7.4% in Chicago, 6.7% in Baltimore, 6.6% in Virginia Beach, 5.87% in Boston, 5.6% in the Washington, DC metro, and 4.9% in Detroit.
Several Texas metros were on the losing side, including Houston, down 5.6%, as well as Austin and Dallas, each down 3.7%. In Florida, Orlando was down 5.6% and Jacksonville 4.1%. Other metros where rents declined were Atlanta, down 1.7%; Denver, down 5.5%; Minnesota, down 5%; Charlotte, down 0.9%; and New York City, down 0.3%.
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