The rental market continued its cooling trend in October, giving renters a bit of relief and reshaping where and how people choose to live. According to Realtor.com’s October Rental Report, the national median rent dropped 1.7% year-over-year to $1,696, marking the 27th straight month of annual declines. It also represented the third consecutive monthly dip, signaling a rental landscape that is slowly resetting from the highs seen during and after the pandemic.
Yet falling rent isn’t the only story. As affordability changes from region to region, more renters are widening their search beyond local neighborhoods. Realtor.com’s data shows 20 of the 50 largest U.S. metros now draw more interest from out-of-market renters than before the pandemic, a shift driven by pricing pressures, lifestyle flexibility, and remote or hybrid work.
Affordability and Flexibility Are Shaping Where Renters Look
“Rent trends have moderated throughout 2025, reflecting a rental market that continues to cool,” said Danielle Hale, Chief Economist at Realtor.com. She noted that shifting affordability between regions is encouraging many renters to cast a wider net.
Instead of limiting searches to their home city, renters are increasingly exploring nearby metros or even entirely new regions. Many are drawn by lower rent prices, while others take advantage of remote work, choosing areas that offer better value, a different lifestyle, or more room to stretch their dollar.
In October, the median rent for studios through two-bedroom units across the largest metros dipped to $1,696, down $29 from last year and $9 from last month. While the median rent is now $63 below the peak in August 2022, prices remain $245 higher than in 2019, underscoring the longer-term affordability challenge.
Where Out-of-Market Renters Are Increasing the Most
Over a six-year span, the rental market in 20 major metros saw a pronounced shift toward more out-of-town renter activity. The biggest swings happened in:
- Detroit, MI: –24.6% local share
- Philadelphia, PA: –23.4%
- Sacramento, CA: –18.9%
- San Francisco, CA: –16.2%
- Charlotte, NC: –14.5%
These cities, while not necessarily low-cost overall, tend to offer rents that are more affordable than neighboring expensive markets, making them appealing alternatives.
For example:
- San Francisco now draws a larger share of interest from nearby San Jose renters. San Jose accounts for 18.4% of rental views in San Francisco up from 7.5% six years ago.
- Philadelphia continues to attract New Yorkers. Views from New York jumped to 25.3%, compared with just 6.7% before the pandemic.
This cross-metro demand highlights renters’ willingness to look for modest price differences that can significantly impact their budget.
Markets With Strong Local Loyalty
While many cities are attracting more newcomers, some metros still draw the majority of attention from residents within their own boundaries. In Q3 2025:
- New York led with 74.8% local renter views
- Chicago: 74.1%
- Los Angeles: 69.6%
- Dallas: 67.9%
- Miami: 64.5%
These metros share two important traits:
- Higher home prices, which keep homeownership out of reach for many residents
- Rent-stabilization policies, which make staying put more appealing than moving elsewhere
In other words, locals in these markets are more likely to remain renters but less likely to relocate to cheaper cities.
Where Out-of-Town Renters Dominate
Some markets attract far more non-local renters than locals. These tend to be midsized metros with stronger affordability and solid job markets. The metros with the largest share of out-of-market rental interest include:
- Raleigh, NC: 69.6%
- Hartford, CT: 67.8%
- Richmond, VA: 66.1%
- Providence, RI: 66.0%
- Nashville, TN: 64.8%
These cities offer:
✔ Lower home prices than large coastal metros
✔ Growing industries that attract young workers
✔ Strong rental demand from relocating renters
✔ A balance of affordability and opportunity
This combination continues to make places like Raleigh and Richmond especially popular among early-career professionals and remote workers seeking more affordable living.
Rents Decline Across All Unit Types
Rent prices fell across all property sizes in October:
- Studios: $1,407 (–2.1% YoY)
- 1-bedroom units: $1,572 (–1.9% YoY)
- 2-bedroom units: $1,877 (–1.7% YoY)
Two-bedroom units which previously saw the fastest price gains over the past six years are now $80 below their 2022 peak, but still nearly 19% higher than in 2019, showing just how far prices climbed during the pandemic cycle.
Affordability Will Continue to Drive Renter Movement
“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, Realtor.com economist.
The data highlights a clear message:
- Affordability remains the biggest force shaping renter decisions.
- As national rent trends cool, regional differences in pricing are influencing whether renters stay local or move.
- More metros may continue seeing rising out-of-market demand as renters seek better financial balance, more space, and improving flexibility in how they live.
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