Rising home costs push U.S. buyers to seek cheaper markets beyond their cities

Realtor.com’s latest analysis finds that a majority of homebuyers across the United States are expanding their search beyond their home metros to escape rising prices, a group now comprising 60% of purchasers in the 100 largest metropolitan areas. Senior economist Jiayi Xu explained that affordability both attracts and repels shoppers as market conditions shift. The highest share of cross-market hunting appears in the West at 65%, with the South, Northeast and Midwest trailing at 59.8%, 58.3% and 56.1% respectively.

In traditionally mid-tier markets like Salt Lake City, Denver and Durham, more than 70% of first-quarter buyers are looking at neighboring cities offering 5%-15% cheaper homes, such as Ogden, Colorado Springs and Raleigh. Real-estate agent Michelle Williams noted a surge in Salt Lake clients closing on properties in Ogden, often saving around $200,000 compared with comparable homes in Salt Lake’s pricier neighborhoods.