Buyers Seek Affordability Beyond Local Markets

Homebuyers in both expensive and midtier metropolitan areas are increasingly looking beyond their immediate local markets to find more affordable housing options or better job prospects. Cross-market home searches on Realtor.com® surpassed 60% across the 100 largest U.S. metros in the spring of 2026, a significant increase from approximately 48% in 2019. The primary driver for these cross-market searches is housing affordability, according to the Realtor.com economic research team. Affordability is a relative concept, with its meaning and impact varying based on the local market conditions and an individual buyer's budget. Senior economist at Realtor.com, Jiayi Xu, explained that affordability attracts potential buyers when present, draws them from more expensive areas, and conversely, pushes them away when it diminishes.

Regionally, the Western United States exhibited the highest rate of outbound home shopping traffic, reaching over 65% in the second quarter of 2026. This was followed by the South at 59.8%, the Northeast at 58.3%, and the Midwest at 56.1%. These figures indicate that in every region of the U.S., more than half of the home shopping activity was directed towards listings located outside of the local market. At the metropolitan level, San Jose, California, recorded the highest volume of out-of-market search traffic among the top 100 metros. In the second quarter of 2026, over 94% of prospective buyers based in San Jose were actively searching for properties elsewhere.

The housing market in San Jose helps to illustrate this trend, as it holds the distinction of being the most expensive major housing market in the United States. In the spring of 2026, the median asking price in the San Jose metro area exceeded $1.39 million. Despite having an unemployment rate lower than the national average, San Jose's median listing price was 225.5% higher than the national average. This substantial affordability gap, as noted by Xu, is sufficient to compel buyers to look for homes in other locations, even when the local job market is strong. For individuals from San Jose who are searching for homes outside their immediate area, San Francisco has emerged as the most popular destination. While San Francisco is also a high-cost market, with median prices significantly above the national average, it still presents a comparatively more accessible option for some buyers priced out of San Jose.