Surge in Out-of-Market Demand Reshapes U.S. Housing Market

Written by Emily J. Thompson, Senior Investment Analyst

Source: Newsfilter

Updated: 6 days ago

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Source: Newsfilter

Increase in External Buyers: According to Realtor.com's report, out-of-market buyers accounted for 61.9% of home views in the 100 largest U.S. metros in Q4 2025, a significant rise from 48.6% in 2019, indicating enhanced mobility and interconnectedness among home shoppers.
Sun Belt's Strong Appeal: In Q4 2025, cities like Cape Coral, Lakeland, and Durham saw over 75% of their demand from external buyers, attracting retirees and investors due to lower home prices and appealing lifestyles compared to coastal cities.
Tech Hubs Attracting External Interest: A notable shift in 39 metros, including San Francisco, which experienced a 25.4% increase in out-of-market interest, is driven by AI job opportunities and data center expansions, highlighting the tech sector's influence on the housing market.
Decline of Local Buyer Dominance: While 13 metros still have a majority of local buyers, their engagement has been declining since 2019, suggesting that out-of-market interest is becoming increasingly significant nationwide, particularly in high-cost areas like New York and Washington, D.C.

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About NWS

News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company’s interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates a real estate information, advertising and services platform, as well as its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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Intensifying Young Household Shortage: In 2025, approximately 1.82 million Millennial and Gen Z households were 'missing', marking the highest count in four years, reflecting how high housing costs and limited supply have delayed independent living, resulting in a significant increase in the share of young adults living with parents.
High Homeownership Barriers: Although the minimum recommended income to purchase a median-priced starter home was about $86,000 in 2025, which is $8,000 lower than the previous year, this threshold remains above the earnings of many younger households, highlighting ongoing affordability challenges.
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U.S. Housing Supply Gap Widens to 4.03 Million Homes

1 day agoNewsfilter

Widening Supply Gap: The 2026 Housing Supply Gap Report indicates that the U.S. housing supply gap expanded to 4.03 million homes in 2025, up from 3.8 million in 2024, highlighting that new construction has failed to keep pace with household formation, leading to continued home price increases and greater pressure on young families.
Intensifying Young Household Shortage: Approximately 1.82 million Millennial and Gen Z households were 'missing' in 2025, the highest count in four years, indicating that high housing costs and limited supply have delayed independent living for young adults, exacerbating the housing shortage.
Regional Disparities: The South has the largest cumulative deficit at 1.62 million homes, while the Northeast faces the most acute shortage relative to construction, with a gap of 952,000 homes, despite achieving the highest housing starts since 2015, indicating persistent demand.
Construction Challenges: Approximately 1.5 million homes were completed in 2025, but structural challenges such as labor shortages and rising material costs have led to single-family starts dropping to the lowest level since 2019, underscoring the need for significant increases in construction to eliminate the current deficit within seven years.

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Cross-Market Dominance: According to Realtor.com's report, in Q4 2025, out-of-market buyers accounted for 61.9% of online views for homes in the 100 largest U.S. metros, a significant structural shift from 48.6% in 2019, indicating increased mobility and interconnectedness among home shoppers.
Sun Belt Appeal: In Q4 2025, 87 of the largest metros saw out-of-market demand surpass local interest, particularly in affordable cities like Cape Coral and Lakeland, which attract many retirees and investors, further elevating the share of non-local shoppers.
AI-Driven Market Shifts: A notable finding is that 39 metros, including San Francisco, have shifted from local dominance to out-of-market interest, with San Francisco experiencing a 25.4% increase in outside interest, driven by AI job opportunities and data center expansions, highlighting technology's profound impact on the housing market.
Declining Local Buyer Share: While 13 metros still have local buyers in the majority, these markets have seen a declining share of local engagement since 2019, suggesting that out-of-market interest is becoming increasingly significant nationwide, potentially influencing future market dynamics.