Rental rates in New York are soaring amid Trump's tariffs: housing prices have jumped by an average of 10%

The rental housing market in New York remains tense. Economic uncertainty caused by the tariff dramas of US President Donald Trump is provoking a rapid increase in rents in the metropolis and a number of other cities.

This is reported by UNN with a reference to TheRealdeal.

The publication notes that the average rent in Manhattan reached a record high of $4,500 in February. In March, it remained almost unchanged at $4,495. This is significantly higher than last year's figures.

Compared to March 2024, the price increased by almost 10%, which is the largest annual jump since May 2023. According to the publication, in Brooklyn, the average rent reached $3,700, which is 6% more than the previous year. In Queens, the cost of rent reached $3,450, which is almost 8% more than last year.

For many years, the history of rent increases has been driven mostly by interest rates. As the Federal Reserve raised rates, frightened potential home buyers postponed their purchase plans and preferred renting. This led to an increase in rents. But now Trump's customs policy has contributed to the rise in rent.

We are at the peak of uncertainty. There is no clear plan or strategy

After the American president began teasing a number of countries with sky-high duties, chaos began. Wall Street was frightened, the S&P 500 index underwent a correction, and mortgage rates and recession risk forecasts rose sharply, the publication notes.

Americans who planned to buy a home in the near future are abandoning this idea, expecting economic shocks. Moreover, mortgage rates jumped even higher amid rising duties. This means that mortgage rates will continue to rise, which will lead to an increase in rents.

On April 10, the White House canceled a key part of its customs plan, establishing a 90-day pause in mutual customs tariffs for all countries except China.

However, this "capitulation" only added to the uncertainty: which tariffs will remain, when will the "season of silence" end?

I think this once again emphasizes that we are in an environment of uncertainty. It will be some time before we are again in an environment that we would characterize as stable

The city's tenants will be able to rest only if things go very badly. In fact, if people do not have jobs and, accordingly, funds, rental prices will fall due to low demand.

If Trump's tariffs lead to a recession, it means a loss of a large number of jobs

But this is one potential promising view. In the near term, home buyers are likely to freeze in wait-and-see mode, fueling rent increases as the peak rental season is just beginning, the publication concluded.

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