Big City Exodus: Home Shoppers Seek Affordability and Lifestyle Changes
Big City Exodus: Home Shoppers Seek Affordability and Lifestyle Changes
In the evolving landscape of the U.S. housing market, the desire for affordability and improved lifestyles is prompting homeowners to look beyond their current metropolitan areas. According to a new report by Realtor.com, a staggering 58.9% of online home shoppers in the 100 largest U.S. metro areas actively sought properties outside their current markets during the second quarter of 2025. This marks a significant increase from the 48.1% recorded in 2019. The shift is indicative of a broader trend where economic circumstances, changing workplace policies, and the ongoing impact of the COVID-19 pandemic continue to shape housing choices.
The Affordable Housing Dilemma
Affordability remains a key trigger for this exodus. Many households face persistent economic constraints, compelling them to explore options that align better with their budgets and lifestyle aspirations. Dr. Danielle Hale, the chief economist at Realtor.com, states, *"While the need for affordable housing drives property searches, fluctuating job opportunities and evolving workplace norms are also critical factors. This change in perspective allows people to broaden their geographic horizons when considering where to live."
The trend appears conspicuous in major urban areas where home prices have skyrocketed. For instance, San Jose, California, topped the list of metros with the highest outbound search share, with an astounding 93.7% of residents exploring properties outside the region. Washington, D.C. and Seattle followed, showing that urban centers, traditionally known for their economic vitality, are becoming less attractive due to high living costs and rising unemployment.
Lost Populations in Popular Areas
The report paints a stark picture of how some cities are losing their residential appeal. Places like San Jose, Washington, D.C., and Seattle are grappling with high out-migration rates. Interestingly, older big cities such as New York, Boston, and Chicago have also entered the list of metros with significant outbound search activities, underscoring the urgency of affordability in these regions.
The pandemic enhanced the attractiveness of smaller, emerging cities, but as the economic situation stabilizes, residents are reconsidering their options. For example, Phoenix, which initially saw a rush of new homebuyers drawn to its affordability, recorded a dramatic increase of 28.5% in out-of-market searches, as local home prices escalated beyond manageable levels.
The Rise of New Alignments
Several cities that thrived during the pandemic are now becoming less favorable as residents confront the constraints of affordability. McAllen, Texas, once a beacon for budget-conscious buyers, is witnessing a sharp decline in its desirability as home prices climb, pushing buyers to look toward larger markets with better employment prospects, like Austin and San Antonio.
In contrast, some metropolitan areas have managed to retain their local buyers. San Francisco reported a modest decrease in outbound searches, suggesting that its improved affordability relative to nearby regions lends it some resiliency. Alongside, cities like Portland, Houston, and Detroit are also seeing upward trends in their market appeal, as they offer a balance of housing affordability and quality of life.
Regional Dynamics at Play
The regional divide reveals substantial variances in search activity. The Western U.S. leads with 65.1% of home shoppers exploring listings outside their current markets. On the other hand, the Northeast experienced remarkable growth, with its out-of-market search increase from 45.4% to 58.8% over the past six years, compelling many residents from high-cost areas to seek cheaper alternatives.
As the housing market continues to fluctuate under various pressures, it is critical for prospective buyers to stay informed about market shifts. The report ultimately illustrates how affordability, local economic conditions, and changing lifestyle priorities contribute to a significant reshaping of the housing market across major U.S. metros. The quest for a tailored living situation is now driving many Americans to reconsider their locations, advocating for a lifestyle that harmonizes budget with personal satisfaction.