A recent report from Zillow indicates that as rental prices climb across the United States, a growing number of tenants are relocating to more affordable markets. The cross-metro search activity on Zillow's platform has surged the most in Buffalo, New York; Chicago; and Houston, with New Orleans and Dallas following closely behind. Rental demand often serves as a leading indicator for future home sales, and these shifts could signal significant changes in the housing market landscape.
In Buffalo, New York, the residential resale market shows no signs of cooling, prompting more renters to delay their homebuying plans. Meanwhile, as rents heat up once again, a substantial wave of tenants is migrating toward lower-cost regions. According to Zillow's data, Buffalo, Chicago, and Houston have seen the highest increases in out-of-town listing searches, trailed by New Orleans and Dallas. The study also found that in cities already experiencing heavy population inflows—such as Salt Lake City; Raleigh, North Carolina; Hartford, Connecticut; and Nashville, Tennessee—out-of-state search volumes now exceed local ones, underscoring a nationwide trend of mobility.
Rental demand generally acts as a barometer for residential sales activity. Zillow Chief Economist Misha Fischer noted in the announcement that people often rent in a new city to experience it before deciding to settle down and purchase a home. When the share of out-of-town rental searches in a particular city consistently rises, it indicates a potential pool of future homebuyers is taking shape. The year-over-year surge in cross-market views for places like Buffalo and Chicago suggests an influx of new residents may be on the horizon.
The cities attracting the most attention from renters typically boast more affordable home prices. According to the National Association of Realtors, the median existing-home price nationwide was $434,100 in July. Data from Realtor.com shows that median home values in Buffalo, Chicago, and Houston all fall below the national benchmark. While rental costs had dipped in recent years as supply expanded across many metros, they are now back on an upward trajectory. Apartment List data reveals that apartment rents saw their first month-over-month increase in four years this August, although they remain slightly lower compared to August 2025.
On Zillow's platform, most cross-metro rental searches originate from neighboring states, but New York City stands out as an exception. New York renters are persistently searching for homes in the Sun Belt region, with a significant share of listing views in Raleigh and Florida cities like Miami, Orlando, and Tampa coming from them. Fischer explained that when external demand floods into smaller and mid-sized cities, it often stems from home affordability challenges. Renters in high-cost areas realize that their budgets can secure better living conditions elsewhere. Meanwhile, population movement toward major metropolitan hubs is more influenced by regional factors, as people are drawn to employment opportunities in larger urban centers.
Despite the significant shift of people to the South during the pandemic and its aftermath, living costs in southern U.S. cities remain lower than on the East and West Coasts. The trend of population inflow persists, driven by a combination of lifestyle preferences and housing affordability. On RentCafe's list of the top 50 "renter-friendly cities," 37 are located in the South, with the top three being McKinney, Texas; Huntsville, Alabama; and Austin, Texas. This ranking takes into account multiple metrics, including the cost of living, rental income growth, and job expansion rates.