Renting apartments in major U.S. metropolitan areas is becoming more difficult due to tariffs affecting developers. The July 2025 Rent Report indicates a decline in multifamily housing construction permits in cities like Orlando, Philadelphia, and San Antonio. This decrease shows a developer pullback in light of rising construction costs and falling rents. Notably, national rents have decreased by 2.5% annually, marking a significant trend in the rental market, which is now characterized by slower growth rates across unit sizes.
Orlando, Philadelphia, and San Antonio experienced a decrease in multifamily housing permitting activity for the first time since 2022, indicating developers might be scaling back due to economic uncertainties.
Falling rents and rising construction costs are discouraging builders from investing in new multifamily housing projects in well-supplied markets.
Tariffs on imported building materials, such as steel and lumber, are contributing to increased construction expenses, further dissuading developers from ramping up permitting activity.
National rents in the largest U.S. metros have declined, with the median asking rent dropping by 2.5% annually, marking a two-year trend of decreases.
The weakening rental market is reflected in slower monthly rent growth rates compared to previous years, with all unit sizes experiencing yearly rent decreases in July.
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