Out-of-Town Buyers Just Became 62% of the Market (And Why That Changes Everything for Rental Investors)

Remember when targeting out-of-state buyers was a niche strategy?

Not anymore.

Out-of-town buyers aren't a segment of the market. They ARE the market.

Realtor.com just dropped data showing out-of-town buyers represent 62% of online home views across the largest 100 U.S. metros. In 2019? 48.6%.

That's a 27% increase in out-of-market interest in 7 years.

And here's the kicker: 87 of the top 100 housing markets are now driven primarily by out-of-town buyers.

This isn't a trend. This is a structural shift in where Americans choose to live.

And if you're a rental investor, this changes everything about where you should be buying, what tenant demographics look like, and how to underwrite deals in 2026.

What's Driving the Great Relocation?

Three forces converging:

1. Affordability collapse in major metros

According to Oxford Economics, a household needed to earn $110,000 in Q3 2025 to buy a single-family home and cover property taxes and insurance.

That's nearly double what was required five years earlier.

Starter homes remain out of reach despite slowing price growth. Tight supply prevented the collapse everyone predicted. Instead, prices stayed elevated while wages couldn't keep pace.

Result: People stopped trying to afford expensive metros and started looking elsewhere.

2. Remote work untethered buyers from employment hubs

Danielle Hale (Realtor.com Chief Economist): "We have seen a fundamental change in where Americans who are shopping for a home are looking to live. As the 'lock-in effect' keeps some owners from selling, those who are moving are increasingly untethered to the market they're currently in."

Translation: If you don't need to commute, why pay San Francisco rents?

3. Weather and quality of life matter more than ever

Warm weather. Lower cost of living. More space. Less congestion.

U.S. News and World Report's "Moving Trends" confirms the allure of affordable metros in the South and Midwest isn't slowing—it's accelerating.

Where Out-of-Town Buyers Are Moving

Sunbelt markets leading the charge:

Cape Coral-Fort Myers, Florida: ~80% of listing traffic from out-of-town buyers in late 2025—higher than during the pandemic.

Lakeland-Winter Haven, Florida: Similar 80% out-of-market interest.

Durham-Chapel Hill, North Carolina: ~80% out-of-town buyer traffic.

Interest coming from three groups:

1. Owner-occupants relocating permanently

2. Second-home buyers

3. Investors

But it's not just Sunbelt anymore.

Midwest and Northeast markets that traditionally sourced buyers locally now average 56% and 62% out-of-town listing views, respectively.

Smaller and mid-sized markets becoming primary migration targets.

United Van Lines' 2025 National Movers Study shows inbound migration led by:

• Oregon

• West Virginia

• South Carolina

Top destination metros:

• Eugene-Springfield, Oregon

• Wilmington, North Carolina

• Dover, Delaware

Allied Van Lines highlights:

• The Carolinas

• Tennessee

• New York State

• Florida

North Carolina "burst on the scene as a hot destination." Former resort towns reimagined as full-time hubs for remote workers. Tech and finance workers drawn to Charlotte.

Michael A. Stoll (UCLA economist): "Population movement continues from North/Midwest regions to Southern states. Top inbound locations dominated by smaller- to medium-sized metro areas. This reflects a legacy of COVID-era preferences for lower-density living, combined with the reality that housing costs continue to drive people toward more affordable regions."

Why This Creates a Rental Demand Explosion

Here's what most investors miss:

Migration and rental demand go hand in hand.

When people move to a new city, they test-drive it first by renting.

Think about it: Would you buy a house sight-unseen in a city you've never lived in?

Most people rent for 6-18 months before committing to purchase.

The data backs this up:

Yahoo! Finance analysis of Realtor.com data shows when tenants move from larger cities to smaller cities like Richmond, Virginia and Pittsburgh, Pennsylvania, the result is:

• Lower vacancy rates

• Higher rental demand

• Upward pressure on rents

Renters arriving from expensive metros are bidding up prices in what were previously budget-friendly cities.

Translation for investors: Markets experiencing heavy in-migration see:

1. Faster lease-up times

2. Lower vacancy rates

3. Stronger rent growth

4. Better tenant quality (often employed remotely with stable income)

The 7% Vacancy Rule

Realtor.com identifies a critical threshold:

Metros with vacancy rates above 7% give tenants tactical advantage. Landlords eager to offer concessions to fill units.

Metros below 7% vacancy? Landlord's market. Rent growth. Less negotiation. Faster absorption.

Smaller cities where tenants arriving en masse? Advantage slides back to landlords.

Where to find these markets:

U.S. News and World Report's "The Fastest-Growing Places in the U.S." clusters around:

• Smaller Southern cities in Florida, South Carolina, Texas

• Western states like California and Arizona (attracting more affluent movers)

These are the safe havens for rental property investors in 2026.

The Demographic Surprise: Older Renters Are the Fastest-Growing Segment

Here's the part nobody saw coming:

Seniors are one of the fastest-growing rental demographics.

Point2Homes (citing U.S. Census data): Senior renter population increased 30% over 10 years—adding 2.4 million people.

The 55-64 age group? Up 500,000.

Why older Americans are choosing to rent over buy:

Harris Poll data shows older residents less willing to carry:

• Mortgages

• Property taxes

• Insurance

• Repair costs

• HOA fees

They prefer ease of movement that renting offers.

What this means for investors:

Older renters aren't targeting gleaming new apartment buildings with rooftop pools and coworking spaces.

They prefer single-family rentals.

Numbers among 65+ age group in single-family rentals: Up more than 25% compared to a decade ago.

Top destination for older renters: Florida—particularly Cape Coral-Fort Myers.

The opportunity: Smaller investors can acquire single-family homes in migration-heavy markets and target stable, long-term tenants with:

• Retirement income

• Pensions

• Social Security

• Former home equity

These aren't 22-year-olds switching jobs every 18 months. These are low-turnover, stable tenants who stay for years.

The Strategic Shift for Rental Investors in 2026

If 62% of buyers are out-of-town and 87 of 100 markets are driven by out-of-market interest, your acquisition strategy needs to change.

Old model: Buy in your backyard. Manage locally. Limited to markets you can drive to.

New model: Follow migration patterns. Buy where people are moving TO, not FROM.

Here's how to execute:

1. Target Migration Destination Markets

Focus on cities with:

• Heavy out-of-town buyer interest (60%+ of listing views)

• Vacancy rates below 7%

• Population growth outpacing housing supply

• Business-friendly regulations

• Affordability relative to major metros

Top candidates based on data:

• Durham-Chapel Hill, NC

• Eugene-Springfield, OR

• Wilmington, NC

• Dover, DE

• Richmond, VA

• Pittsburgh, PA

• Charlotte, NC

• Smaller Florida markets (Cape Coral, Lakeland)

• Tennessee metros

2. Underwrite for Remote Worker Demographics

Remote workers bring:

• Stable income not tied to local economy

• Higher tolerance for rent (coming from expensive metros)

• Longer lease terms (testing market before buying)

• Lower default risk (professional income)

Adjust underwriting to capture this tenant profile.

3. Focus on Single-Family Rentals Over Multifamily

The data's clear: Older renters (fastest-growing demographic) prefer single-family homes.

Single-family advantages:

• Lower competition from institutional buyers in smaller markets

• Better tenant retention (families and retirees stay longer)

• Easier financing for smaller investors

• More control over property management

4. Partner with Local Operators

You don't need to live in the market. You need boots on the ground.

Partner with:

• Local property managers with tenant pipelines

• Investor-friendly agents who understand rental metrics

• Contractors who can handle remote renovations

Technology makes remote ownership viable. Property management software, virtual tours, electronic leases—all enable out-of-market investing.

5. Track Moving Company Data

United Van Lines and Allied Van Lines release annual migration reports.

Use them.

They show where people are actually moving—not where they're browsing online.

Combine with:

• Realtor.com out-of-town buyer data

• U.S. News migration trends

• Local vacancy rates

• Employment growth data

This creates your target market list.

The Risks Nobody's Talking About

Not every migration market is a winner.

Watch for:

Oversupply risk: Some Sunbelt markets attracted so much development that supply outpaced demand. Austin, Phoenix, Nashville all saw rent declines after construction booms.

Economic dependency: If a migration market relies on one employer or industry, recession risk concentrates. Diversified economies perform better.

Regulatory shifts: States and cities seeing rapid in-migration often respond with rent control, tenant protection laws, increased property taxes. Monitor political climate.

Climate risk: Florida attracts retirees but faces hurricane exposure and rising insurance costs. Underwrite for elevated insurance premiums.

Affordability erosion: As out-of-town buyers bid up rents in formerly affordable markets, locals get priced out. This creates political pressure for intervention.

The 2026 Rental Investment Playbook

Where to buy: Migration destination markets with sub-7% vacancy, growing employment, business-friendly regulations.

What to buy: Single-family rentals targeting remote workers and older renters.

How to buy: Partner with local operators. Use technology for remote management.

Underwrite conservatively for insurance and regulatory risk.

Who to target: Stable, long-term tenants relocating from expensive metros with remote income or retirement funds.

When to buy: Now—before out-of-town buyers finish their 6-18 month rental "test drive" and start buying, which compresses rental inventory further.

The Bottom Line

Out-of-town buyers went from 48.6% to 62% of the market in 7 years.

87 of the top 100 housing markets now driven by out-of-market interest.

This isn't a blip. This is the new normal.

Americans untethered from employment hubs. Chasing affordability, weather, quality of life. Renting first, buying later.

For rental investors, this creates a once-in-a-generation opportunity:

Buy where people are moving TO. Target demographics with stable income and low turnover. Acquire single-family rentals in sub-7% vacancy markets. Partner locally. Operate remotely.

The investors who adapt to this migration wave will build portfolios with:

• Faster lease-up

• Lower vacancy

• Stronger rent growth

• Better tenant quality

The investors who ignore it will keep chasing deals in saturated markets where locals can't afford to rent and out-of-towners aren't moving.

Capital follows migration. Always has. Always will.

The question isn't whether this trend continues. It's whether you position yourself ahead of it.

Learn The 5 Step Process Hundreds of Investors Have Used To Close Multifamily Deals In 90 Days With As Little As $18k Out Of Pocket.

LIVE Q&A TRAINING WITH JUSTIN THIS WEEK! 6PM PST

🙏🏼 Thanks for reading!

You can also find us on Facebook, and YouTube. 

Join our Facebook Group here!

Click here to join our WhatsApp Community.

Here's how I can help: 

1. Book a strategy call with Justin and his team to get "eureka moment" clarity about where you're at and where you want to go with real estate investing and plan.

2. Get investing tools and learning by starting with The Multifamily Schooled Courses.  

—Justin Brennan