Displacements can be used as indicators of structural health and are measured by commercially available sensors that need to be accurate and cost effective. In this paper, we examine a technique to utilize a UHF RFID tag antenna as a displacement sensor by mapping structural deformation to a change in RFID tag characteristics. We evaluate how changes in two different parameters, a) tag backscatter power and b) minimum reader transmit power required for RFID chip activation, can be mapped to structural deformation. The theoretical principles of sensor development are first discussed followed by a presentation of the results of experimentation. It is demonstrated that the sensor is sensitive to displacements for a dynamic range of 40 mm.