Tariffs and Rising Construction Costs Could Signal Trouble Ahead For Rents - Despite Two Years Price Declines
Realtor.com (NASDAQ:NWSA) reports that U.S. rental prices have declined for 24 consecutive months, with median asking rent falling to $1,712 in July 2025, representing a 2.5% year-over-year decrease. However, concerning trends are emerging in the construction sector, as multifamily completions plummeted 38.1% year-over-year to 406,000 units in June 2025.
The decline in development is particularly severe in the Midwest (-55.7%), followed by significant drops in the South (-33.5%), Northeast (-33.0%), and West (-28.9%). Major markets like Orlando (-54.9%) and Charlotte (-54.8%) are experiencing substantial quarterly permitting declines. New tariffs on steel and aluminum, combined with rising construction costs and shrinking profit margins, suggest potential future supply constraints despite current rental market cooling.
Realtor.com (NASDAQ:NWSA) riferisce che i canoni di locazione negli Stati Uniti sono diminuiti per 24 mesi consecutivi, con il canone richiesto mediano sceso a $1,712 a luglio 2025, pari a una diminuzione annua del 2.5%. Tuttavia stanno emergendo segnali preoccupanti nel settore delle costruzioni: le completazioni multifamiliari sono crollate del 38.1% su base annua, attestandosi a 406,000 unità a giugno 2025.
Il calo nello sviluppo è particolarmente marcato nel Midwest (-55.7%), seguito da profonde riduzioni nel South (-33.5%), nel Northeast (-33.0%) e nel West (-28.9%). Mercati importanti come Orlando (-54.9%) e Charlotte (-54.8%) registrano forti cali trimestrali nei permessi. Nuovi dazi su acciaio e alluminio, combinati con l'aumento dei costi di costruzione e il restringimento dei margini di profitto, lasciano presagire possibili vincoli di offerta in futuro nonostante il raffreddamento attuale del mercato degli affitti.
Realtor.com (NASDAQ:NWSA) informa que los precios de los alquileres en EE. UU. han caído durante 24 meses consecutivos, con la renta solicitada mediana bajando a $1,712 en julio de 2025, lo que supone una reducción interanual del 2.5%. Sin embargo, empiezan a aparecer tendencias preocupantes en el sector de la construcción: las finalizaciones multifamiliares se desplomaron un 38.1% interanual, hasta 406,000 unidades en junio de 2025.
La caída en el desarrollo es especialmente pronunciada en el Midwest (-55.7%), seguida de descensos significativos en el South (-33.5%), el Northeast (-33.0%) y el West (-28.9%). Mercados importantes como Orlando (-54.9%) y Charlotte (-54.8%) están experimentando fuertes descensos trimestrales en las concesiones de permisos. Los nuevos aranceles sobre el acero y el aluminio, junto con el aumento de los costos de construcción y el estrechamiento de los márgenes de beneficio, apuntan a posibles restricciones de oferta en el futuro a pesar del enfriamiento actual del mercado de alquileres.
Realtor.com (NASDAQ:NWSA)에 따르면 미국 임대료는 24개월 연속 하락했으며, 2025년 7월 요청 중위 임대료는 $1,712로 떨어져 전년 대비 2.5% 감소를 기록했습니다. 다만 건설 부문에서는 우려스러운 흐름이 나타나고 있는데, 다세대 주택 완공이 전년 대비 38.1% 급감하여 2025년 6월에 406,000가구에 그쳤습니다.
신규 개발 감소는 Midwest(-55.7%)에서 특히 심각하며, 이어 South(-33.5%), Northeast(-33.0%), West(-28.9%) 순으로 큰 폭의 하락을 보였습니다. Orlando(-54.9%)와 Charlotte(-54.8%) 같은 주요 시장은 분기별 허가 건수가 크게 줄고 있습니다. 철강과 알루미늄에 대한 신규 관세, 건설 비용 상승과 이익률 축소가 맞물리면서, 현재 임대 시장의 냉각에도 불구하고 향후 공급 제약이 발생할 가능성을 시사합니다.
Realtor.com (NASDAQ:NWSA) rapporte que les loyers aux États-Unis ont diminué pendant 24 mois consécutifs, le loyer demandé médian étant tombé à $1,712 en juillet 2025, soit une baisse annuelle de 2.5%. Cependant, des tendances préoccupantes apparaissent dans le secteur de la construction : les achèvements multifamiliaux ont chuté de 38.1% en glissement annuel, pour atteindre 406,000 unités en juin 2025.
Le recul des constructions est particulièrement sévère dans le Midwest (-55.7%), suivi de baisses importantes dans le South (-33.5%), le Northeast (-33.0%) et le West (-28.9%). Des marchés majeurs comme Orlando (-54.9%) et Charlotte (-54.8%) connaissent de fortes diminutions trimestrielles des permis. De nouveaux droits de douane sur l'acier et l'aluminium, combinés à la hausse des coûts de construction et au resserrement des marges, laissent envisager de possibles contraintes d'offre à l'avenir malgré le refroidissement actuel du marché locatif.
Realtor.com (NASDAQ:NWSA) berichtet, dass die Mieten in den USA nunmehr 24 Monate in Folge gesunken sind; die geforderte Medianmiete fiel im Juli 2025 auf $1,712, was einen Rückgang von 2.5% gegenüber dem Vorjahr bedeutet. Gleichzeitig zeichnen sich besorgniserregende Entwicklungen im Bausektor ab: Die Fertigstellungen von Mehrfamilienhäusern sind im Jahresvergleich um 38.1% eingebrochen und beliefen sich im Juni 2025 auf 406,000 Einheiten.
Der Rückgang der Bautätigkeit ist im Midwest (-55.7%) besonders stark, gefolgt von deutlichen Einbrüchen im South (-33.5%), im Northeast (-33.0%) und im West (-28.9%). Große Märkte wie Orlando (-54.9%) und Charlotte (-54.8%) verzeichnen starke vierteljährliche Rückgänge bei Baugenehmigungen. Neue Zölle auf Stahl und Aluminium, steigende Baukosten und schrumpfende Gewinnmargen deuten trotz der derzeitigen Abkühlung des Mietmarkts auf mögliche künftige Angebotsengpässe hin.
- Rent prices have declined for 24 consecutive months, providing relief to renters
- Current median rent of $1,712 is 2.7% below peak levels from August 2022
- Year-to-date rent growth is softer at 1.2% compared to 2.8% in 2024
- Multifamily completions dropped severely by 38.1% year-over-year to 406,000 units
- New doubled tariffs on steel and aluminum are increasing construction costs
- Major markets showing significant permitting declines, signaling future supply constraints
- Despite recent declines, rents remain 17.4% above pre-pandemic levels
Insights
Two-year rent decline continues but construction pullbacks and tariffs threaten future rental supply, potentially reversing the renter-friendly market.
The US rental market has experienced 24 consecutive months of price declines, with July's median asking rent for 0-2 bedroom properties in the 50 largest metros falling to
The most significant development is the dramatic
The permitting data across major metros reveals early warning signs of further supply constraints. Orlando saw permits for multifamily units plunge
This construction pullback stems from three primary factors: elevated construction costs, compressed profit margins from lower rents, and newly expanded tariffs on imported building materials like steel, aluminum, and lumber. These tariffs, doubled in June, will likely exacerbate construction headwinds and further reduce new supply.
Despite rents remaining
This data indicates we're at an inflection point in the rental market cycle. While renters currently enjoy more leverage and financial breathing room than they've had in years, the supply-side constraints suggest this renter-friendly environment may be time-limited. The sharp reduction in new construction will eventually create supply shortages, potentially reversing the two-year trend of declining rents.
The impact is being felt across the country as the Midwest saw the steepest annual drop in completions, followed by the South.
The median asking rent for 0–2 bedroom properties in the 50 largest metros fell to
"Rents have now declined for two full years, giving renters more leverage and financial breathing room than they've had in some time," said Danielle Hale, Chief Economist at Realtor.com®. "But there are early signs that relief may not last forever. Developers are pulling back in key markets, and construction headwinds—especially tariffs on steel, lumber and aluminum—could create a shortfall in new rental supply down the line."
Multifamily Development Pulls Back Sharply
In June 2025, multifamily completions for buildings with two or more units fell
The impact is being felt unevenly across the country. The Midwest saw the steepest annual drop in completions (–
Disrupted Local Permitting Trends with New Higher Tariffs Signals More Pull Backs Ahead
Permitting trends across large metro areas show that some markets are already feeling the effects from higher construction costs and compressed profits:
Orlando, Fla. : Permits for multifamily units dropped -54.9% from Q1 to Q2 2025—the first Q2 decline since 2022.Philadelphia, Pa. andSan Antonio, Texas also saw their first Q2 permitting dips in three years.Charlotte, N.C. andLas Vegas , N.V. experienced their largest quarterly permitting declines in Q2 since 2022.- Even
San Francisco, Calif. , which saw a modest increase, posted its slowest Q2 growth in permitting in three years.
These local slowdowns suggest that developers are responding to worsening conditions by reducing plans for new projects—an early warning sign that the supply of new rental units could tighten over time. Looking ahead, the doubled tariffs on imported steel and aluminum announced in June could make this condition worse.
"If construction pullbacks continue, today's renter-friendly market could give way to a tighter, more competitive landscape," said Hale. "It's a trend we'll be watching closely, especially in markets that had previously led the way in multifamily development."
Table: Markets With Disrupted Permitting Trends
Market | 5 Units or | % Diff | % Diff | % Diff | % Diff |
| 2251 | -54.9 % | 66.9 % | 44.5 % | 12.6 % |
937 | -28.1 % | 18.9 % | 27.9 % | 72.7 % | |
| 420 | -27.3 % | 8.3 % | 57.7 % | 19.2 % |
| 970 | -54.8 % | 178.3 % | 35.6 % | -19.8 % |
926 | -34.3 % | 60.7 % | -0.9 % | -15.0 % | |
1346 | 15.9 % | 100.9 % | 85.4 % | 38.5 % |
Rent Trends by Unit Size
While rent prices typically rise during spring and summer, this year's seasonal lift has been softer than usual. As of July, rents were up just
Despite near-term affordability gains for renters, the sharp drop in multifamily completions and early signs of weakening permitting activity may shift market dynamics later this year or in 2026. Realtor.com® will continue to monitor construction trends and policy changes to track the evolving landscape for renters and developers alike.
Table: National Rents by Unit Size, July 2025
Unit Size | Median Rent | Rent YoY | Consecutive | Total Decline | Rent Change - |
Overall | -2.5 % | 24 | -2.7 % | 17.4 % | |
Studio | -1.4 % | 23 | -4.0 % | 13.5 % | |
1-Bedroom | -2.8 % | 26 | -4.1 % | 15.6 % | |
2-Bedroom | -2.3 % | 26 | -3.1 % | 19.0 % |
Median Asking | YOY | Six Year | # Permits for Buildings with 5+ | |
1,576 | -4.3 % | 10.2 % | 2408 | |
1,460 | -5.3 % | 15.5 % | 2706 | |
1,827 | -0.1 % | 15.1 % | 691 | |
1,202 | -3.8 % | 14.2 % | 122 | |
2,993 | -1.5 % | 14.7 % | 1396 | |
NA | NA | NA | 104 | |
1,519 | -1.5 % | 15.6 % | 970 | |
1,785 | -2.4 % | 12.7 % | 2270 | |
1,312 | -4.4 % | 15.5 % | 408 | |
1,229 | -2.0 % | 25.5 % | 271 | |
1,225 | -0.6 % | 22.5 % | 3473 | |
1,458 | -2.6 % | 15.4 % | 8649 | |
1,783 | -7.7 % | 7.3 % | 2706 | |
1,297 | -2.1 % | 11.4 % | 868 | |
NA | NA | NA | 158 | |
1,352 | -3.6 % | 8.4 % | 3804 | |
1,298 | -2.9 % | 30.6 % | 833 | |
1,499 | -4.3 % | 26.0 % | 804 | |
1,404 | 3.2 % | 27.4 % | 1360 | |
1,471 | -2.9 % | 22.8 % | 926 | |
2,751 | -3.2 % | 11.7 % | 3605 | |
1,253 | -4.9 % | 20.7 % | 940 | |
1,186 | -3.3 % | 15.0 % | 35 | |
2,332 | -2.9 % | 36.3 % | 5489 | |
1,662 | -1.5 % | 15.5 % | 288 | |
1,514 | -2.6 % | 3.1 % | 1398 | |
1,531 | -3.7 % | 22.4 % | 905 | |
NA | NA | NA | 95 | |
2,889 | 0.0 % | 26.0 % | 7166 | |
985 | -2.9 % | 7.1 % | 540 | |
1,694 | -1.4 % | 21.8 % | 2251 | |
1,771 | -2.7 % | 9.1 % | 937 | |
1,491 | -5.4 % | 23.5 % | 3747 | |
1,490 | 2.3 % | 42.3 % | 340 | |
1,693 | -4.5 % | 16.2 % | 946 | |
NA | NA | NA | 191 | |
1,498 | -4.6 % | 24.0 % | 1563 | |
1,526 | -0.5 % | 26.2 % | 1016 | |
2,040 | -5.7 % | 14.6 % | 1661 | |
NA | NA | NA | 50 | |
1,889 | -3.3 % | 25.7 % | 845 | |
1,347 | -0.7 % | 19.5 % | 293 | |
1,246 | -2.6 % | 21.0 % | 420 | |
2,668 | -6.6 % | 11.1 % | 2636 | |
2,747 | -2.4 % | -6.0 % | 1346 | |
3,442 | 0.9 % | 6.6 % | 474 | |
1,999 | -3.0 % | 6.4 % | 1376 | |
1,741 | -0.2 % | 39.5 % | 2652 | |
1,516 | -2.2 % | 19.9 % | 38 | |
2,327 | 0.6 % | 16.1 % | 1708 |
Methodology
Rental data as of July 2025 for studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within the 50 largest metropolitan areas. Realtor.com began publishing regular monthly rental trends reports in October 2020 with data history stretching back to March 2019.
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media contact: Mallory Micetich, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/tariffs-and-rising-construction-costs-could-signal-trouble-ahead-for-rents---despite-two-years-price-declines-302526948.html
SOURCE Realtor.com
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