AUSTIN, TX — For the 20th straight month, U.S. rents have continued to drop, with the median asking price for rental units in the 50 largest metropolitan areas standing at $1,694 in March, $65 below its peak in 2022. According to the Realtor.com® March Rent Report, this sustained decrease largely reflects increased multifamily housing inventory. However, new tariffs on building materials could disrupt further rent declines.
“While the median asking rent is down $65 monthly or over $700 annually, in nearly every major U.S. metro rents are still considerably higher than 2019,” said Joel Berner, senior economist at Realtor.com®. Berner attributed these declines to a steady stream of multifamily building projects but warned that tariffs on materials like steel and aluminum could delay or halt construction activity.
Pandemic-Era Rent Growth Still Lingers
Although rent reductions have been pronounced in recent years, overall prices remain well above pre-pandemic levels. The national median rent has climbed 20.2%, from $1,409 in March 2019 to $1,694 in March 2025. Cities like Pittsburgh (47.9%), Tampa, Fla. (45.7%), Indianapolis (34%), and Sacramento, Calif. (30.6%) have seen some of the fastest rent increases. San Francisco is the sole exception, where rents remain slightly below pre-pandemic levels.
Tariff Impacts Loom
The recently imposed tariffs of up to 25% on key building materials pose a significant challenge to the multifamily housing sector. Rising construction costs may deter developers and delay new projects, reducing rental supply and applying upward pressure on prices. Markets with robust multifamily permit activity, including Milwaukee, Oklahoma City, and Memphis, Tenn., are most vulnerable to these effects.
Berner cautioned that even regions with slower permitting may see similar impacts as developers reassess their plans. For renters in cities with current price declines, Berner highlighted the potential benefits of signing longer leases to secure favorable rates amid this uncertain environment.
Outlook
While U.S. rents are on the decline, external factors like tariffs could alter the trajectory. Policymakers and developers face the challenge of balancing construction expansion with evolving material costs. For renters, now may be the opportune moment to capitalize on more affordable rental options before potential cost pressures mount.
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