**Apartment Rent Growth Stalls in March, but Tariffs Could Ignite Increases, Says Redfin**
The median asking rent for apartments in the U.S. dipped slightly by 0.6% year over year in March to $1,610, according to a recent report from Redfin. On a month-over-month basis, rents posted a modest increase of 0.4%. March marked the 13th consecutive month in which year-over-year apartment rent changes remained relatively flat, hovering within ±1%.
While Redfin economists have long warned that declining apartment construction could eventually push rent levels higher, a new factor has emerged that may accelerate this trend: tariffs.
“America gets a lot of building materials from other countries, so tariffs will make building apartments more expensive,” said Chen Zhao, Redfin’s economics research lead. “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.”
Adding to the rental market’s complexity is the growing affordability crisis in the housing market. Last week, Redfin noted that the income required to purchase a median-priced home has surged to $116,633 per year. In contrast, the annual income needed to afford the median apartment rent is significantly lower, at $64,160 — widening the gap between homeownership and renting.
With the dual pressures of limited housing supply and global trade uncertainties, experts warn that apartment rents could soon rise after a year of relatively stagnant growth.
