Out-of-Town Renters Are Driving Up Demand in These Five Cities

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If you feel like it’s getting harder to find a rental that fits your budget, you’re not alone. A new Realtor.com October 2025 Rental Report analysis highlighted in the New York Post shows that out-of-town renters are reshaping demand in five major cities: Detroit, Philadelphia, Sacramento, San Francisco, and Charlotte.

These cities don’t have much in common at first glance. They’re spread across the country, with different economies, cultures, and housing histories. But they share one key trait: they’re all cheaper than nearby big-ticket cities, and that price gap is pulling in renters from outside markets.

Why Out-of-Towners Are on the Move

The boom in remote and hybrid work has given a lot of renters flexibility. At the same time, rents in traditional “winner” cities — like New York, San Jose, Los Angeles and Washington, D.C. — have climbed so high that people are looking for more affordable alternatives.

According to Realtor.com’s rent report, between 2019 and the third quarter of 2025, demand has shifted sharply toward these five metros. In each one, the share of local renters viewing listings has dropped, while the share of people browsing from other cities has jumped.

In simple terms, locals now have to compete not just with their neighbors, but with renters from wealthier or more expensive areas who can often pay more.

Detroit: Motor City Becomes Magnet City

Detroit saw the biggest shift of all five cities. In 2019, most rental interest there came from locals. By 2025, the local share had dropped by nearly 25 percentage points, down to just 45.1 percent of rental traffic.

Who’s looking at Detroit rentals now? A large share of out-of-market views come from Indianapolis, Washington, D.C., and New York City.

Detroit still offers far more affordable rents compared to those feeder cities. That makes it attractive for renters willing to move for lower costs and more space. But it also means local residents face new competition from people who may be used to paying a lot more in rent — and are willing to offer higher amounts to win the unit they want.

Philadelphia: New York’s Affordable Escape Hatch

Philadelphia has long been a quieter, cheaper alternative to New York City. Now the numbers prove just how strong that pull has become.

In 2019, New Yorkers accounted for only a small share of Philadelphia’s rental views. By the third quarter of 2025, they made up more than a quarter of all rental traffic into the city.

The price difference explains why. During that period, the typical asking rent in New York City was about $2,925 per month, while the median asking rent in Philadelphia was around $1,743.

For a renter in the city, that gap can mean the difference between a cramped studio and a full-sized apartment. For locals in Philadelphia, it means more competition and faster-moving listings, especially in popular neighborhoods.

Sacramento: California Renters Look for Relief

Sacramento has quietly become a pressure valve for California’s sky-high rents. The share of local demand there has dropped as out-of-town renters from San Jose and Los Angeles increasingly set their sights on the city.

In the third quarter of 2025, Sacramento’s median asking rent was about $1,858. That’s more than $1,500 cheaper than San Jose and nearly $940 less than Los Angeles.

For tech workers burning out on Silicon Valley prices, Sacramento offers a chance to stay in California, keep relatively close to job hubs, and actually breathe when the rent is due.

San Francisco: Still Pricey, but Less Impossible

It might surprise some people to see San Francisco on a list of markets attracting out-of-towners, especially after so many headlines about people leaving during the pandemic. But the numbers show a more nuanced story.

San Francisco had a sharp decline in local rental demand over six years. At the same time, interest from San Jose renters surged, growing significantly since 2019.

Why would someone leave San Jose for San Francisco, another famously expensive city? Because San Francisco’s median rent, while high, is now about 16 percent lower than San Jose’s. For someone used to Silicon Valley prices, San Francisco can actually feel like a bargain.

Charlotte: A Southern Standout for New Arrivals

Rounding out the list is Charlotte, North Carolina, where local rental demand has fallen while out-of-town interest has grown, especially from Atlanta and New York City.

Charlotte offers a strong job market, especially in banking and finance, with a lower cost of living than many East Coast hubs. A renter can lease an apartment in Charlotte for nearly half of what they would pay in New York City.

For locals, that’s a double-edged sword. Growth brings new businesses, jobs, and amenities — but it also puts pressure on rents and makes it harder for long-time residents to stay in the areas they’ve always called home.

Big Picture: Rents Down, Competition Up

Even as out-of-towners push up demand in these five cities, national rents overall are slipping slightly. October 2025 marked the 27th straight month of year-over-year rent declines, with the median asking rent across the 50 largest metros at $1,696, down 1.7 percent from a year earlier.

Smaller units — studios and one-bedrooms — have seen the largest price drops. For renters in general, that’s good news. But in these specific magnet cities, the story is less about falling prices and more about who is competing for the available homes.

What This Means for Renters on the Ground

For renters living in Detroit, Philadelphia, Sacramento, San Francisco, and Charlotte, the message is clear: you’re no longer just up against your neighbors. You’re now competing with renters from some of the most expensive markets in the country, many of whom are used to paying far more than the local norm.

That means acting faster, casting a wider net within your metro, and staying realistic about what you can afford. For policymakers and city leaders, the trend is a warning sign that demand is shifting faster than supply — and that keeping housing accessible for locals will require real planning.

Out-of-towners aren’t going away. As long as there are big gaps in rent between major metros, people will keep moving — and these five cities will stay at the center of that shift.

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