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Where rental demand is heading and what it means for home sales
CNBC • • business
Key Points:
- Home prices remain high in the for-sale market, causing many renters to delay buying and prompting increased rental demand, especially in more affordable cities.
- Zillow reports significant growth in out-of-town rental searches in cities like Buffalo, Chicago, and Houston, indicating potential future migration to these markets.
- Rising rents, which turned positive month-to-month in August for the first time in four years, are driving tenants to seek more affordable housing options in cheaper markets, particularly in the South.
- Renters from expensive metros like New York City are increasingly searching for rentals in Sunbelt cities such as Raleigh, Miami, Orlando, and Tampa, motivated by affordability and lifestyle factors.
- Southern cities dominate RentCafe's "Best Cities for Renters" list, with McKinney, Texas; Huntsville, Alabama; and Austin, Texas ranking highest due to favorable cost of living, income growth, and employment opportunities.
