Realtor.com® Report Reveals Growing Trend of Renters Relocating Beyond Their Cities
The latest Realtor.com® October Rental Report indicates a sustained decline in rents, marking the 27th consecutive month of year-over-year decreases. In October, the national median rent for properties with two bedrooms or fewer was recorded at $1,696, a reduction of 1.7% compared to the previous year and down $9 from the last month. This continual downturn in rent reflects a broader cooling of the rental market throughout 2025, which has prompted many renters to explore settings beyond their immediate geographic areas in search of more affordable housing options.
Interestingly, many cities which previously exhibited a robust demand solely from local renters have now seen a shift towards an increased interest from prospective tenants residing outside their markets. The report notes that 20 of the 50 largest metropolitan areas across the country are experiencing this budding out-of-market demand, a trend that has gained momentum since the effects of the pandemic began to recede.
Rent affordability and lifestyle flexibility are key factors driving this change. Many individuals are now relocating in search of reduced rents, largely enabled by the rise of remote and flexible work arrangements. Areas like Detroit, Philadelphia, and Sacramento are among those showing the most pronounced shifts, evidenced by significant declines in local resident traffic by 24.6%, 23.4%, and 18.9%, respectively.
Data suggest that renters are not only exploring nearby markets but are also willing to branch out to entirely different regions to find homes that better fit their budgets. For instance, the rental market in San Francisco is now attracting a growing share of interest from San Jose, marking a substantial rise from 7.5% to 18.4% of views originating from that area. Similarly, inquiries from New York residents for rental properties in Philadelphia have surged, increasing from 6.7% to 25.3% over the last few years.
As some renters take advantage of this easing in rental prices to move to more affordable areas, there are those who opt to remain in higher-cost cities where rent stabilization and high home prices create barriers to relocation. This dual pattern of behavior highlights the driving force of affordability on the rental market's dynamics, suggesting that even though national rent trends are softening, local market conditions continue to vary significantly.
In terms of unit sizes, the decline in rental costs was observed across all categories in October. The median asking rents were $1,407 for studios (down 2.1% year-over-year), $1,572 for one-bedroom units (down 1.9%), and $1,877 for two-bedroom units (also down 1.7%). Historically, two-bedroom apartments have seen exponential growth over the last six years, and while they are currently priced $80 below their 2022 peak, they still boast a significant 19% increase from 2019.
This report serves as a vital resource for understanding the evolving landscape of the rental market, where factors such as remote work continue to influence renters' decisions, resulting in increasingly diverse preferences for housing across various geographic locations. The Realtors and industry stakeholders should thus remain cognizant of these shifting dynamics to effectively cater to the changing needs and behaviors of renters in today's market.
Interestingly, many cities which previously exhibited a robust demand solely from local renters have now seen a shift towards an increased interest from prospective tenants residing outside their markets. The report notes that 20 of the 50 largest metropolitan areas across the country are experiencing this budding out-of-market demand, a trend that has gained momentum since the effects of the pandemic began to recede.
Rent affordability and lifestyle flexibility are key factors driving this change. Many individuals are now relocating in search of reduced rents, largely enabled by the rise of remote and flexible work arrangements. Areas like Detroit, Philadelphia, and Sacramento are among those showing the most pronounced shifts, evidenced by significant declines in local resident traffic by 24.6%, 23.4%, and 18.9%, respectively.
Data suggest that renters are not only exploring nearby markets but are also willing to branch out to entirely different regions to find homes that better fit their budgets. For instance, the rental market in San Francisco is now attracting a growing share of interest from San Jose, marking a substantial rise from 7.5% to 18.4% of views originating from that area. Similarly, inquiries from New York residents for rental properties in Philadelphia have surged, increasing from 6.7% to 25.3% over the last few years.
As some renters take advantage of this easing in rental prices to move to more affordable areas, there are those who opt to remain in higher-cost cities where rent stabilization and high home prices create barriers to relocation. This dual pattern of behavior highlights the driving force of affordability on the rental market's dynamics, suggesting that even though national rent trends are softening, local market conditions continue to vary significantly.
In terms of unit sizes, the decline in rental costs was observed across all categories in October. The median asking rents were $1,407 for studios (down 2.1% year-over-year), $1,572 for one-bedroom units (down 1.9%), and $1,877 for two-bedroom units (also down 1.7%). Historically, two-bedroom apartments have seen exponential growth over the last six years, and while they are currently priced $80 below their 2022 peak, they still boast a significant 19% increase from 2019.
This report serves as a vital resource for understanding the evolving landscape of the rental market, where factors such as remote work continue to influence renters' decisions, resulting in increasingly diverse preferences for housing across various geographic locations. The Realtors and industry stakeholders should thus remain cognizant of these shifting dynamics to effectively cater to the changing needs and behaviors of renters in today's market.
Topics Consumer Products & Retail）
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