Housing Policy Shifts Could Shake Up the Rental Market in 2025

September 1, 2025 – In a move that could reshape the rental housing market, the Trump administration is weighing a national housing emergency and tariff exemptions for key construction materials like steel, copper, aluminum, and possibly lumber. The goal? Lower construction costs, boost housing supply, and ease the pressure on renters and landlords alike.

Why This Matters for Renters

Rising construction costs don’t just affect new homeowners — they directly impact rental prices. When it’s expensive to build new housing, fewer units are created, competition for rentals increases, and monthly rents climb.

If tariff relief goes through, developers and property owners could:

• Build new rental units at lower costs

• Renovate existing apartments more affordably

• Pass some of those savings down to tenants in the form of stable or reduced rent prices

For renters in high-demand areas like Riverside, San Bernardino, Hemet, Perris, and Moreno Valley, this could mean more available listings and less cutthroat competition.

The Potential Impact on the Rental Market

Area of ImpactWhat Could Change for RentersAvailabilityMore affordable construction may lead to new apartment complexes and ADUs entering the market.PricingIncreased supply could help slow or even reverse rental price hikes.QualityLandlords might invest more in renovations and upgrades when building materials are cheaper.Lease TermsGreater supply often means renters have more bargaining power on lease lengths and incentives.

Opportunities for Landlords & Property Managers

If construction becomes more cost-effective, landlords could add value to their properties through:

• Building Accessory Dwelling Units (ADUs) for rental income

• Renovating older rentals to attract higher-quality tenants

• Expanding into underbuilt markets with high rental demand

The policy changes could also improve ROI on multi-family projects, making it easier for investors to justify adding rental units to their portfolios.

Local Market Perspective

In Southern California, where rental vacancies remain low and demand high, tariff relief could be a game-changer. Markets like San Bernardino and Riverside counties have seen double-digit rent increases over the past few years. Lower construction costs could help balance supply and demand, benefiting both renters and landlords.

Challenges & Unknowns

While these proposals sound promising, there are still questions:

• Will Congress support a national housing emergency declaration?

• How quickly can tariff cuts be implemented?

• Will developers pass savings to renters, or will the benefits be absorbed into profit margins?

The Bottom Line

If implemented, these policy shifts could open the door to more affordable rentals, better housing quality, and expanded rental options in Southern California and beyond. Renters should watch for new developments in late 2025, while landlords and investors may want to prepare for a more active, competitive rental market.

Looking for affordable rental options or advice on maximizing your property investment?
Contact us today to learn how we can help you navigate these changes and find opportunities in the evolving market.