Across the country, renters have been feeling the squeeze ever since the pandemic. Monthly payments jumped quickly during those years and, while they’ve slowed down, prices never really fell back. Experts are warning that another round of increases may be on the horizon. One reason is tariff anxiety. When the cost of imported goods like lumber, steel, and aluminum becomes uncertain, it creates a chain reaction that eventually shows up in your rent. Landlords and developers pass these costs down to tenants. So even if wages aren’t going up, the amount you pay for housing might.

Why do many people still choose renting over buying

Redfin’s chief economist, Daryl Fairweather, points out that many people continue renting because it feels safer and more flexible. If you lose your job or your financial situation changes, it’s much easier to move out of an apartment at the end of a lease than it is to sell a house. That flexibility is especially valuable during uncertain economic times. But the downside is that heavy demand for rentals keeps prices high. When more people compete for the same number of apartments, landlords can raise the rent and still find tenants.

A housing supply problem that won’t go away

The cost of rent isn’t just about demand. Supply plays a big role, too. In cities where builders have been able to put up new apartments and houses, rent growth has slowed down or even flattened. On the other hand, in areas that haven’t built enough new housing to match the population, rents keep climbing. This gap between how many units are needed and how many are available is a big reason renters feel stuck. Without more construction, competition for existing housing stays fierce, and prices reflect that shortage.

Developers are nervous about tariffs

William Rieber, an economics professor, explains that builders hesitate to start new projects when tariffs make construction materials unpredictable in price. If the cost of steel or lumber suddenly jumps 20%, a project that looked profitable can quickly become a money loser. Instead of taking that risk, many developers delay or cancel their plans. That pause means fewer new apartments and homes are added to the market. Over time, this lack of new supply keeps upward pressure on rents, even when demand levels out.

What the numbers look like in Indiana and beyond

In central Indiana, renters are paying an average of about $1,406 per month, which is a 1.3% increase compared to last year. That might not sound huge, but when you’re already stretched thin, every bit matters. Nationally, the average rent is around $1,610 per month, which means Indiana is still cheaper than many parts of the country. Even so, renters there aren’t immune to national economic forces like tariffs and construction slowdowns. What happens at the federal level with trade policy can eventually ripple down to your local rent bill.