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Evolving Affordability Is Redefining Renter Decisions

Nov 25, 2025
Redefining Renter Decisions

In October, the national median rent dipped 1.7% annually to $1,696 amid a softer rental market, while 20 major metros reported higher out-of-market demand than before the pandemic

Rents edged down in the month of October, marking the 27th consecutive month of year-over-year declines and the third consecutive month-over-month dip, according to Realtor.com’s October Rental Report.

The report also found that the makeup of renters in many markets is shifting — compared with before the pandemic, 20 of the 50 largest metros have transitioned from mostly local renter activity to a greater demand from out-of-market shoppers looking to relocate.

The trend of more renters looking beyond their own backyards appears to be driven by affordability and lifestyle flexibility, with renters increasingly relocating in search of lower rents or remote/flexible work arrangements; the most pronounced changes were reported in Detroit, Michigan; Philadelphia, Pennsylvania; and Sacramento, California.

Danielle Hale
Danielle Hale, chief economist, Realtor.com

"Rent trends have moderated throughout 2025, reflecting a rental market that continues to cool," said Danielle Hale, chief economist at Realtor.com. "At the same time, shifting affordability across regions is reshaping renter behavior, with a growing share of demand coming from outside local markets. Data show that more renters are willing to look farther afield, in some cases to entirely new markets, for homes that better align with their budgets."

In October, the national median asking rent for zero to two-bedroom properties in the 50 largest U.S. metros was $1,696, down $29 (-1.7%) from one year ago, and $9 from last month, reflecting the usual fall slowdown and the softer conditions that have defined 2025. Notably, while the October median rent was $63 (-3.6%) below the August 2022 peak, it remains $245 (16.9%) higher than in 2019.

Out-Of-Town Demand On The Rise

Over the past six years, 20 of the nation's 50 largest metros have seen rental demand shift from being dominated by local renters to a greater share of out-of-market interest. The sharpest declines in local market share were reported in:

  • Detroit, Michigan (-24.6%)
  • Philadelphia, Pennsylvania (-23.4%)
  • Sacramento, California (-18.9%)
  • San Francisco, California (-16.2%)
  • Charlotte, North Carolina (-14.5%)

These markets that, while not necessarily inexpensive overall, offer relatively lower rents than nearby larger metros, making them comparatively more attractive to out-of-town renters.

For example, San Francisco's rental market is now drawing a much larger share of interest from nearby San Jose, California, which accounts for 18.4% of views within the metro, up from just 7.5% six years ago. While expensive, San Francisco has a median rent 15.8% lower than San Jose. In Philadelphia, rental traffic from New York has also grown sharply, rising to 25.3% of all views compared with 6.7% before the pandemic.

Speaking of the Empire State, in Q3 2025, New York recorded the highest share of local rental demand, with 74.8% of online rental views coming from residents within the metro, remaining nearly unchanged from six years ago. Other large metros with strong in-market activity included:

  • Chicago (74.1%)
  • Los Angeles (69.6%)
  • Dallas (67.9%)
  • Miami (64.5%)

In these markets, a high local share reflects rent-stabilization protections and persistently high home prices, which keep homeownership rates low and encourage residents to remain renters.

By contrast, Raleigh, North Carolina reported 69.6% of rental demand from out-of-market shoppers, followed by:

  • Hartford, Connecticut (67.8%)
  • Richmond, Virginia (66.1%)
  • Providence, Rhode Island (66%)
  • Nashville, Tennessee (64.8%)

These metros tend to have more affordable home prices, which contribute to higher homeownership rates and a smaller pool of local renters. At the same time, they draw newcomers with strong job markets and renter-friendly conditions. Raleigh, North Carolina and Richmond, Virginia, for instance, have emerged as leading destinations for recent graduates seeking affordable living and career opportunities, while Nashville remains among the top rental markets overall, reflecting its growing appeal to renters from outside the area.

Jiayi Xu
Jiayi Xu, economist, Realtor.com

"As some renters take advantage of easing prices to move to more affordable areas, others are staying put in higher-cost metros where rent protections and elevated home prices make relocation harder," said Jiayi Xu, economist at Realtor.com. "These varied patterns show how affordability continues to drive differences in local rental dynamics, even as national rent trends cool."

Rent Declines Across The Board

Nationally, rents fell across all unit sizes in October. Median asking rents were $1,407 for studios (down 2.1% year-over-year); $1,572 for one-bedrooms (down 1.9% year-over-year); and $1,877 for two-bedrooms (down 1.7% year-over-year). Two-bedroom units, which saw the fastest growth over the past six years, are now $80 (down 4.1% year-over-year) below their 2022 peak, but still nearly 19% higher than totals reported in 2019.


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