The for-sale housing market remains robust, with prices showing no signs of decline, which is causing many renters to delay home purchases. As rents begin to rise again, tenants are increasingly searching for rentals in more affordable markets such as Buffalo, Chicago, and Houston, according to Zillow.
These cities are experiencing significant growth in out-of-town searches, indicating a potential influx of new residents. Mischa Fisher, chief economist at Zillow, noted that a rise in rental searches from outside the metro areas often precedes an increase in home sales.
The national median price for existing homes was $434,100 in July, while the markets attracting renters tend to have lower home prices. After a period of easing, rents have started to increase again, with August marking the first month-to-month rise in four years, although they remain slightly below August 2025 levels.
Notably, renters from New York City are looking towards the Sunbelt, with significant interest in cities like Raleigh and various Florida locations. Fisher emphasized that affordability drives many renters to explore smaller markets, while larger cities attract individuals seeking job opportunities.
The trend of migration to the South continues, as these areas remain more affordable compared to the East and West coasts. Additionally, a report from RentCafe highlights that 37 of the top 50 cities for renters are located in the South, with McKinney, Texas; Huntsville, Alabama; and Austin, Texas, ranking as the top three based on factors like cost of living and employment growth