What's Happening?
Recent data from Realtor.com indicates a significant shift in homebuyer demand, with a majority of prospective buyers now looking at properties outside their local markets. In the fourth quarter of 2025, 62% of views for homes in the 100 largest U.S.
metro areas were from out-of-market buyers. This trend, which began during the COVID-19 pandemic, marks a departure from pre-pandemic patterns where local buyers dominated. The analysis highlights that 87 of the 100 largest metros saw higher out-of-market demand, particularly in affordable and fast-growing Sun Belt areas like Lakeland and Cape Coral in Florida, and Durham, North Carolina. These regions are attracting retirees, second-home buyers, and families, driven by factors such as affordability and lifestyle preferences.
Why It's Important?
This shift in homebuyer demand has significant implications for the U.S. housing market and regional economies. Areas experiencing increased out-of-market interest may see economic growth and infrastructure development as new residents bring diverse needs and resources. Conversely, regions with high local demand, like New York and Washington, D.C., face challenges due to elevated housing costs, which may limit market entry for out-of-market buyers. The trend also reflects broader societal changes, such as increased mobility and remote work, which allow people to live further from traditional job centers. This could lead to a redistribution of economic activity and population density across the country.
What's Next?
As this trend continues, regions with high out-of-market interest may need to adapt by expanding housing supply and infrastructure to accommodate new residents. Policymakers and urban planners in these areas might focus on sustainable growth strategies to manage the influx. Additionally, cities with declining local demand may need to address affordability issues to attract more diverse buyer demographics. The ongoing development of AI-related jobs and data centers in certain regions could further influence these patterns, potentially leading to new economic hubs.
