The article discusses the impact of tariffs on building materials sourced from abroad, emphasizing how these tariffs may inflate construction costs for apartments, subsequently raising rents. Chen Zhao from Redfin highlights that tariffs could lead to a rise in demand for rentals as economic uncertainty drives potential buyers to opt for renting instead. Reports from Redfin agents indicate that some individuals, particularly in Northern Virginia, are hesitant to buy due to job insecurity linked to layoffs. With ongoing supply issues and rising costs, rental markets may face additional pressures across various regions.
'Tariffs will make building apartments more expensive, further hampering apartment supply and potentially causing rents to jump,' said Chen Zhao from Redfin.
"Economic uncertainty fueled by tariffs may lead more individuals to rent instead of buy homes, contributing to increased demand for rentals," stated Matt Ferris.
The NAHB reports that nearly one-quarter of the softwood lumber used in the U.S. key for apartment construction comes from Canada.
Redfin warned that rising construction costs, linked to tariffs, could disrupt the balance between new supply and rental demand across various markets.
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