{"id":189424,"date":"2026-09-21T12:23:18","date_gmt":"2026-09-21T18:23:18","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=189424"},"modified":"2026-09-21T12:23:22","modified_gmt":"2026-09-21T18:23:22","slug":"rental-demand-shifts-to-more-affordable-markets-as-tenants-seek-relief","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/rental-demand-shifts-to-more-affordable-markets-as-tenants-seek-relief","title":{"rendered":"Rental Demand Shifts to More Affordable Markets as Tenants Seek Relief"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Just as prospective car buyers test-drive a new vehicle before purchasing, renters are test-driving new cities online before they commit, offering a key indicator of future rental-hub growth.<\/span><\/p>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/august-2026-market-report\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow\u2019s August 2026 housing report<\/span><\/a><span data-preserver-spaces=\"true\"> showed that affordability is the major factor in predicting where a tenant will move, coupled with job prospects. Buffalo, Houston, Dallas, and New Orleans posted the largest year-over-year increases in the share of rental searches coming from outside the areas.<\/span><\/p>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/news\/affordability-is-redrawing-the-map-of-where-americans-are-looking-to-rent\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow\u2019s commentary<\/span><\/a><span data-preserver-spaces=\"true\"> on the report says that renting is how people audition a city before committing, so a jump in outside browsing signals a pipeline of arrivals.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Mischa Fisher, chief economist at Zillow, commented:<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cFor a decade, the migration story was simple: Leave the expensive coasts for the Sunbelt. What has changed is that renters are finding alternative, mid-sized cities that quietly <\/span><span data-preserver-spaces=\"true\">turned into a bargain<\/span><span data-preserver-spaces=\"true\"> while everyone was looking south. And because rental demand runs a step ahead of the moving trucks, this could be a preview of where the country is going, not a recap of where it has been.\u201d<\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">Buffalo Draws the Most Online Searches<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Buffalo,<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/2025-hottest-markets\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Zillow\u2019s hottest market in 2024 and 2025<\/span><\/a><span data-preserver-spaces=\"true\">, drew the most action from out-of-town online searches in August, up 4.2% from a year earlier. Houston was up 3.4%, and New Orleans was up 3%.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Several established relocation destinations already received more rental page views from outsiders than locals. In this category, Raleigh was a clear winner, according to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/rent-search-trends-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow<\/span><\/a><span data-preserver-spaces=\"true\">, with 59% of rental listing views originating outside the metro, followed by Zillow\u2019s<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/hottest-markets-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> 2026 hottest market,<\/span><\/a><span data-preserver-spaces=\"true\"> Hartford, Connecticut, at 55.1%.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Other notable cities include:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">New Orleans at 53.7%<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Salt Lake City at 51.9%<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Nashville at 51.7%<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Providence at 51.5%<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">&#8220;When primary cities become unaffordable, demand tends to migrate to what\u2019s nearby,\u201d Justin Donald, author and founder of The Lifestyle Investor, wrote in<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.forbes.com\/councils\/forbesfinancecouncil\/2026\/09\/15\/how-real-estate-investors-can-find-high-demand-markets-by-looking-beyond-popular-locations\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Forbes<\/span><\/a><\/em><span data-preserver-spaces=\"true\">. \u201cMany people who want to live in a major city but cannot afford its housing premiums move to towns within a 45-to-60-minute commute.\u201d\u00a0<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Renters Are Prepared to Move Long Distances<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Among long-distance searches, the lure of more affordable markets was a concurrent theme. Washington, D.C.-area renters supplied 23.9% of views on Baltimore rentals, Los Angeles renters generated 21.3% of views in Riverside, and Boston renters accounted for 16.1% in Providence. Further still, New York-to-Hartford represented 6% of Hartford rental views, while Los Angeles renters delivered 5.5% of views in Las Vegas.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cThe metros where a renter can actually get ahead, with a bigger place, a real city around them, and enough left over to save, are winning this competition,\u201d Fisher said. \u201cThat kind of pull lasts in a way a warm forecast never will.\u201c<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">While interest from out-of-town renters is a useful screening tool for landlords, it\u2019s not the only one. Interest from local renters is also important; in that regard, relatively affordable markets also dominated. Cincinnati recorded the strongest annual increase in local share, up 8.1% year over year, followed by Jacksonville at 4.6% and Columbus at 3.2%.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Investors Need to Consider More Than Clicks<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">However, for real estate investors looking for markets to buy in, the calculation has to be about more than following the clicks. Affordability on both sides of the equation\u2014for tenants and landlords\u2014is a key metric.<\/span><\/p>\n<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/research\/august-2026-rent-report\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow\u2019s August rental market update<\/span><\/a><span data-preserver-spaces=\"true\"> put the typical asking rent at $1,948, up 0.2% month over month, requiring a household income of $77,919. According to Zillow, the typical rents in its most searched cities all fall under this number:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">Buffalo:<\/span><\/strong><span data-preserver-spaces=\"true\"> Typical rent of $1,449 in August<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Houston:<\/span><\/strong><span data-preserver-spaces=\"true\"> $1,643<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Dallas:<\/span><\/strong><span data-preserver-spaces=\"true\"> $1,659<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">New Orleans:<\/span><\/strong><span data-preserver-spaces=\"true\"> $1,598<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Landlords need to match this data with stats for employment, taxes, incomes, insurance purchase prices, inventory availability, and market stability.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/july-2026-wsj-rdc-housing-market-ranking\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Realtor.com&#8217;s<\/span><\/a><span data-preserver-spaces=\"true\"> summer housing report, five of the top 20 saw incomes exceeding the affordability threshold of housing costs at or below 30% of household income:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">Peoria, Illinois<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Akron, Ohio<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Youngstown-Warren, Ohio<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Canton-Massillon, Ohio<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Rockford, Illinois<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">While this may augur well for home sales, it\u2019s also a good bellwether for investors because buying in these markets will likely <\/span><span data-preserver-spaces=\"true\">result in<\/span> <a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\"> when tenants <\/span><span data-preserver-spaces=\"true\">seek to<\/span><span data-preserver-spaces=\"true\"> rent before buying or prefer the convenience and affordability of renting in a high-interest market.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Why Mom-and-Pop Landlords Hold the Advantage in Smaller Metros in the Midwest and Northeast<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Large institutional investors own the highest percentage of single-family homes in 20 markets, primarily in the Southeast and Southwest, according to the Hamilton Project, as cited by<\/span><em><a class=\"editor-rtfLink\" href=\"https:\/\/www.businessinsider.com\/institutional-investors-single-family-homes-cities-map-2026-1\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Business Insider<\/span><\/a><\/em><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Although these account for only around 3% of single-family homes nationally, in some Southern cities such as Atlanta and Jacksonville, that share can spike to well over 20%. This leaves many Midwest and Northeast potential rentals largely untouched by larger investors, with small <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/buying-multifamily\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamilies<\/span><\/a><span data-preserver-spaces=\"true\"> offering the advantage of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/real-estate-investing\/house-hacking-strategy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house hacking<\/span><\/a><span data-preserver-spaces=\"true\">, FHA financing, and cash flow.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, competition from other small investors is rapidly increasing. \u201cAn affordability advantage never stays a secret for long,\u201c <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/news\/affordability-is-redrawing-the-map-of-where-americans-are-looking-to-rent\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow&#8217;s Fisher said<\/span><\/a><span data-preserver-spaces=\"true\">. \u201cThe metros pulling outsized attention today are the ones where demand, and eventually rents, are about to firm up. For a renter eyeing Buffalo or Chicago, the window to get in ahead of the crowd is narrower than it looks.\u201d<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Final Thoughts: Practical Moves an Investor Can Make When Evaluating a City Today<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Before buying in a new city, an investor needs to move beyond the headlines and examine whether rental income will cover a property\u2019s total costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It\u2019s more than a basic current-day cash flow analysis; it&#8217;s a projected one, too. You need to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-1311\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">consider<\/span><\/a><span data-preserver-spaces=\"true\"> rent growth, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/5-steps-to-lower-vacancy-rates-and-increase-renewal-rates\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">vacancies<\/span><\/a><span data-preserver-spaces=\"true\">, and landlord concessions. High search activity is a good starting point, but balance it with a look at widespread incentives, such as concessions, which may indicate a landlord is struggling to fill units.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Comparing several rentals in the same ZIP code and property class by talking to local property managers and running cash flow analysis using lower rents, longer vacancies, and a major repair without banking on <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-appreciation-in-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">appreciation<\/span><\/a><span data-preserver-spaces=\"true\"> is a good stress test because investors can be sure of one thing: Things never go as planned.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Other useful resources include the<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bls.gov\/lau\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\"> Bureau of Labor Statistics<\/span><\/a><span data-preserver-spaces=\"true\"> to check local employment and <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.census.gov\/construction\/bps\/msamonthly.html?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Census building-permit data<\/span><\/a><span data-preserver-spaces=\"true\"> to examine the construction pipeline. Heavy apartment construction could limit rent growth, but if it coincides with high employment and job demand, this is an area you&#8217;ll want to be in, all else being equal.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Just as prospective car buyers test-drive a new vehicle before purchasing, renters are test-driving new cities online before they commit, offering a key indicator of future rental-hub growth. Zillow\u2019s August [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":185500,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-189424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/189424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=189424"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/189424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/185500"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=189424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=189424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=189424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}