Tariffs are turning rent control from a bad idea to an even worse one

Across the board, property managers in office, industrial, retail, multifamily, and even hospitality will feel the pain from these tariffs. Even the most budget-conscious folks are feeling immense pressure on several fronts; all of these circumstances beyond one’s control.

But there is one factor that can be controlled, and ironically, it’s rent control. Legislators across the country at both the state and local level have a choice. A choice to either continue to implement bad rent control policies that only hurt the quantity and quality of the housing supply, or to finally comprehend that rent control policies are not the answer, especially during a time of increased tariffs.

In theory, landlords should be able to pass along the added cost from these tariffs to their tenants. However, if any sort of rent stabilization policy is in place, landlords won’t be able to counteract these rising costs, which are being compounded by the other factors previously mentioned.

In a sense, rent control is like adding gasoline to an already raging fire.

The impact of tariffs on rents is complex and multifaceted. As tariffs increase the price of imported goods, it will lead to higher costs for consumers and businesses, specifically those that rely on raw materials. Not only will the cost of building materials, like steel, aluminum, lumber, and timber go up, but the cost to maintain and renovate units will go up as well. Items like appliances are expected to be impacted greatly.

Ultimately, rent control on top of tariffs will rapidly take away a landlord’s ability to sustain the quality of their units. Mary Scherer, an IREM^® CPM^®, summarizes this impact perfectly:
“Rent control is a detriment to landlords and residents alike. Maintaining a property takes money.  As a building ages, those costs usually increase. Add to that equation the rising prices of labor and material, and increased tariffs. If rents are not increased, then something has to give, and most likely maintenance will be deferred. As time goes on it costs more to replace what could have been fixed, and the condition of the property deteriorates.”

At the end of the day, neither landlords nor tenants want a property to fall into disrepair.

Not only do tariffs threaten the quality of available rental housing, but if landlords aren’t able to make the appropriate adjustments, they’ll be forced to leave the rental market.

With tariffs, the high cost of building materials and labor shortages will likely slow or delay the construction of new apartments, which will also lower the current quantity or supply of housing.

In addition to the delayed construction of apartments, the cost to build a single-family home is expected to go up $10,900 per home, according to recent data from the NAHB/Wells Fargo Housing Market Index (HMI) April 2025 survey.

With fewer people able to buy homes, renters who were expected to leave the rental market will be more inclined to keep renting, increasing competition for available units. With economic uncertainty, it’s likely more individuals will choose to rent over buying a home. Thus, it’s clear we need to supply more rental housing.

During a time when housing supply and affordability should be top of mind for legislators across the nation, rent control is, and will always be, a bad idea. Rent control discourages housing investment in rental properties, exacerbating the problem it aims to solve.

That’s why it’s important for property managers to advocate for change at the state and local level and continue to fight rent control legislation. Meeting and educating city council members, state legislators, and housing agencies to present alternatives to rent control will be crucial during this time.

Contact IREM Government Affairs to learn more on how you can be an effective advocate for the industry.