2 Unexpected Reasons Tariffs Could Make Your Rent More Expensive
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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While the future of tariffs remains to be seen after U.S. Court of International Trade ruled that President Donald Trump had overstepped his authority by imposing them and then a federal appeals court temporarily reinstated them, it’s definitely possible that Trump is able to move ahead with his initial plans. If Trump’s tariffs are put into effect, the price of many goods could rise — but, perhaps unexpectedly, rent prices could rise as well.
Here’s a closer look at why rent could get more expensive if Trump’s tariffs are imposed.
Higher Construction Costs Could Get Passed Down to Renters
Renters who move into new buildings will likely see higher prices than they would were tariffs not in effect.
“When construction materials become more expensive — whether it’s imported cabinetry, electrical components or flooring — those increased costs squeeze developers and contractors,” said Mike Petrakis, founder and CEO of PowerPay, which works with contractors to provide affordable home improvement payment options.
“In many cases, that pressure gets passed downstream,” he continued. “For new apartment builds, it means higher development costs, which translate into higher rents to meet return thresholds.”
In addition to construction materials, appliance prices are also expected to increase if tariffs are imposed.
“All of these things will increase the cost of construction, providing services and maintaining properties, which are usually passed along to residents in the form of increased rents,” said Jeff Lail, COO of WithMe, Inc., which provides tech-enabled amenity solutions.
Renters in Existing Buildings Could Bear the Brunt of Higher Maintenance Costs
Even renters who don’t move to new construction buildings could see rent hikes as the cost to maintain existing buildings increases.
“Property owners operating on thin margins may raise rents, not because they’re improving units, but simply because maintaining them costs more,” Petrakis said. “It’s a subtle cycle, but over time, renters end up footing the bill for global policy decisions.”
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