What's Happening?
A recent analysis by Realtor.com has highlighted a significant shift in U.S. homebuyer demand, with a growing trend towards out-of-market interest. In the fourth quarter of 2025, nearly 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 market. The analysis indicates that 87 of the 100 largest metros saw out-of-market demand surpass local demand, particularly in fast-growing Sun Belt and lifestyle-driven metros like Lakeland and Cape Coral in Florida, and Durham, North Carolina. These areas are attracting retirees, second-home shoppers, and families. The shift is attributed to various factors, including elevated housing costs in cities like New York and Washington, D.C., which deter out-of-market buyers, and strong internal economies in cities like Chicago, Dallas, and Atlanta, which retain local buyers.
Why It's Important?
This shift in homebuyer demand has significant implications for the U.S. housing market and regional economies. The increased interest in out-of-market properties suggests a more interconnected and mobile market, potentially leading to changes in housing prices and availability in certain areas. Regions experiencing rapid growth in AI-related jobs, data center expansion, and power infrastructure projects are particularly attractive to out-of-market buyers, indicating a correlation between job opportunities and housing demand. This trend could influence urban planning, infrastructure development, and local economies, as areas with high out-of-market interest may see increased investment and population growth. Conversely, regions with high housing costs may face challenges in attracting new residents, impacting their economic growth.
What's Next?
As the trend of out-of-market interest continues, it is likely that regions with affordable housing and strong job markets will see sustained growth in demand. This could lead to increased competition for homes, driving up prices and potentially leading to housing shortages in popular areas. Policymakers and urban planners may need to address these challenges by investing in infrastructure and housing development to accommodate the influx of new residents. Additionally, cities with high housing costs may need to explore strategies to make their markets more accessible to out-of-market buyers, such as offering incentives or developing affordable housing options.
