Here's How Tariffs On Steel, Aluminum Could Change NYC Real Estate

NEW YORK CITY — President Donald Trump's sweeping tariffs are making critical imported building materials like aluminum and steel more expensive, which could raise soaring rents even higher and discourage building new housing in the city, according to a report from Realtor.com.

Manhattan and the Bronx are the two boroughs developing new multi-family housing the fastest, and therefore stand to have their rents and building projects impacted the most by the tariffs, the report said.

Though many tariffs have been put on hold for a 90-day extension, aluminum and steel are still currently subjected to 25 percent tariffs, the report said.

"By inflating building costs, these tariffs could deter builders from initiating new projects and compel developers to pause or scrap existing plans," Realtor.com® economist Jiayi Xu said.

In 2024, Manhattan and the Bronx reported the fastest growth rates for newly permitted multifamily homes at 24.6 percent and 24.2 percent, respectively.

The median rent in Manhattan for 2025 is already at an increase of 5.6 percent higher than last year at this time, the report said.

Read the full report here.

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