Rising U.S. rent prices are prompting more tenants to move to more affordable markets, according to a recent Zillow report. Cities such as Buffalo, New York; Chicago; and Houston are experiencing the highest increase in out-of-town rental searches on Zillow, followed by New Orleans and Dallas. Conversely, established in-migration markets like Salt Lake City, Raleigh, Hartford, and Nashville now see more rental interest coming from outside their metro areas than from locals.

Historically, rental demand serves as an early signal of future home sales since renting often allows people to test a community before buying. Zillow’s chief economist, Mischa Fisher, explains that a surge in out-of-town rental searches points to an upcoming wave of new residents. This trend is noticeable in places like Buffalo and Chicago as renters seek more affordable housing options compared to pricier metro areas where existing home prices stood at a $434,100 median in July.

Rent prices, which had been mostly declining due to increased supply, reversed course recently with August marking the first month-to-month rent increase in four years. Despite this uptick, rents remain slightly below last year’s levels. Most out-of-town rental interest comes from neighboring states, but New York City stands out as an exception, with its renters searching heavily in Sunbelt cities like Raleigh and Florida markets such as Miami, Orlando, and Tampa.

Affordability drives much of this movement, with renters in expensive regions opting for markets offering more value. Southern cities dominate in renter appeal, with many ranking highly on RentCafe’s “Best Cities for Renters” list, fueled by cost of living, income growth, and jobs. Markets like McKinney, Texas; Huntsville, Alabama; and Austin, Texas top this list, illustrating the ongoing shift toward regions combining lifestyle and economic opportunity.