Redfin Reports U.S. Asking Rents Fell Slightly in March, But Tariffs Could Drive Up Costs for Renters

New tariffs could increase rental demand and hamper rental supply, which would cause rents to rise

(NASDAQ: RDFN) —The median U.S. asking price fell 0.6% year over year to $1,610 in March, and rose 0.4% month over month. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Asking rents have stabilized below their 2022 record high of $1,705. March marked the 13th-straight month in which asking rents barely decreased or increased, with a year-over-year change of less than 1% during each of those months.

Redfin economists have been saying for months that it’s only a matter of time before rents tick up again. That’s because apartment construction is slowing, which will likely motivate landlords to raise rents because there won’t be as much supply, meaning they won’t be competing as fiercely for tenants. Now there’s a new twist that could expedite this process: tariffs.

“America gets a lot of building materials from other countries, so tariffs will make building apartments more expensive. That could further hamper apartment supply, causing rents to jump,” said Redfin Economics Research Lead Chen Zhao. “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. 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.”

Redfin agents confirm that some people are leaning toward renting because they’re concerned about the economy. Matt Ferris, a Redfin Premier real estate agent in Northern Virginia, said one of his customers is considering selling their home and renting for a year because they’re worried about losing their job. Federal workers in Northern Virginia and Washington, D.C. have been heavily impacted by mass layoffs instituted by Elon Musk’s Department of Government Efficiency (DOGE).

Tariffs could have a big impact on the rental market partly because nearly one-quarter of America’s softwood lumber—a key material in building apartments—comes from Canada, according to the National Association of Home Builders.

During the pandemic moving frenzy, rents skyrocketed because there weren’t enough apartments to meet surging demand. Builders then ramped up construction, which caused rents to fall in 2023 and early 2024 because landlords were competing for tenants. There are still a lot of newly built apartments coming on the market, which is keeping rent growth at bay. But renter demand is strong due to high homebuying costs, which means rent declines are also limited—for now.

Asking rents are nearly $400 below their record high in Austin, but posting double-digit increases in Cincinnati

In Austin, TX, the median asking rent dropped 10.7% year over year to $1,420 in March—$379 below its record high. That was the largest decline in percentage terms among the 44 major U.S. metropolitan areas Redfin analyzed. Next came San Diego (-9.7%), Portland, OR (-7.8%), Minneapolis (-7.8%) and Raleigh, NC (-6.8%).

Texas was one of the top homebuilders during the pandemic building boom, which is one reason Austin is seeing such a large decline in rents. The recent declines mean Austin is no longer the state’s most expensive big city for renters.

Asking rents rose most in Cincinnati (12.1%), Providence, RI (11.4%), Cleveland (10.6%), Washington, D.C. (8.5%) and Baltimore (8.4%).

Redfin Premier agent Cody Brownfield said Cincinnati has seen an influx of new apartments, but not enough to meet demand, which is one reason rents are climbing. Many of those new apartments are also in high-priced buildings, he added.

Asking rents tick down across all bedroom types

The median asking rent for 0-1 bedroom apartments fell 0.9% year over year to $1,467. For 2 bedroom apartments, it decreased 0.5% to $1,690. And for 3 bedroom apartments, it fell 0.4% to $1,997—the smallest decrease in months.

To view the full report, including charts and methodology, please visit:

https://www.redfin.com/news/rental-tracker-march-2025

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250414563289/en/

“America gets a lot of building materials from other countries, so tariffs will make building apartments more expensive. That could further hamper apartment supply, causing rents to jump,” said Redfin Economics Research Lead Chen Zhao.