US renters increasingly seek housing in cheaper cities
In the United States, renters are increasingly looking for housing in cities with lower costs as rental prices have begun to rise and the home-buying market shows no signs of cooling. The largest increase in searches from outside metropolitan areas on Zillow was recorded in Buffalo, Chicago and Houston, CNBC reports.
Rental demand from other metropolitan areas
According to Zillow, after Buffalo, Chicago and Houston, the largest increase in interest from renters outside the metropolitan area has been observed in New Orleans and Dallas. In Salt Lake City, Raleigh, Hartford and Nashville, which have already experienced a significant influx of new residents, the number of rental searches from other metropolitan areas exceeds local searches.
Zillow Chief Economist Mischa Fisher noted that renting often gives people an opportunity to try living in a new area before deciding to buy a home. According to him, an increase in the share of rental inquiries from other metropolitan areas may indicate the formation of a flow of new residents. Rental demand is usually a leading indicator of future home sales.
Housing affordability determines the choice
The cities attracting the greatest interest from renters also stand out for lower home prices. The median price of an existing home sold in the United States in July was $434,100, according to the National Association of Realtors. In Buffalo, Chicago and Houston, median prices were lower, Realtor.com data show.
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Rents in most US markets had been declining over the previous several years due to increased supply, but have now started rising again. According to Apartment List calculations, in August the monthly change in rental rates turned positive for the first time in four years, although rent levels were still slightly lower than in August 2025.
Interest in the American South
Most rental searches from other metropolitan areas on Zillow come from neighboring states. New York is an exception: renters there continue to look for housing in cities in the American South, accounting for a significant share of listing views in Raleigh, as well as Miami, Orlando and Tampa. Despite substantial migration to the South during and after the pandemic, these markets remain more affordable than the US East and West coasts.
In RentCafe's “Best Cities for Renters” ranking, 37 of the 50 cities are located in the South. The top three positions were taken by McKinney, Texas; Huntsville, Alabama; and Austin, Texas; the ranking takes into account, among other factors, the cost of living, growth in renters' incomes and employment.
