Trump’s Tariffs May Ship Rents Greater, Economist Warns – Redfin (NASDAQ:RDFN)

A brand new report from Redfin Corp. RDFN launched Monday confirmed that rents remained comparatively steady final month. Nonetheless, economists warned that President Donald Trump‘s tariffs may put upward strain on the rental market. 

The Particulars: In keeping with the Redfin report, the median U.S. asking lease declined 0.6% 12 months over 12 months to $1,610 in March whereas edging up 0.4% month over month.

This marks the thirteenth consecutive month of lease stability, with annual modifications remaining beneath 1% since early 2024. 

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Rents stay 5.6% beneath their 2022 peak of $1,705 because the market re-balances from post-pandemic development surges and protracted demand. 

Nonetheless, Redfin economists warned that the continuing commerce battle may disrupt the steadiness available in the market. 

“America will get quite a lot of constructing supplies from different nations, so tariffs will make constructing flats dearer. That would additional hamper residence provide, inflicting rents to leap,” stated Redfin Economics Analysis Lead Chen Zhao. 

Tariffs may additionally enhance demand by growing lease if individuals select to lease slightly than purchase amid the financial uncertainty. 

“Tariffs have already triggered large swings within the inventory market, and they’re going to lead to larger costs for a lot of items and providers, together with elevated unemployment,” Zhao added. 

Redfin brokers additionally reported that heightened financial issues push some households to prioritize renting over homeownership.

A Redfin agent in Northern Virginia shared that one consumer is contemplating promoting their dwelling and renting quickly attributable to fears of job loss linked to federal workforce reductions below Elon Musk’s DOGE cost-cutting initiatives. 

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