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For the last few years, the narrative about the U.S. real estate market has been that homeowners are not moving. They are rate-locked and staying put.
That is no longer the case. The latest numbers from a Realtor.com analysis reveal that Americans are, in fact, moving in large numbers, possibly upending the playbook for real estate investors.
More homes mean more moves, and that is especially true in the Sunbelt, where the U.S. metros with the highest listing activity are in Texas, including Dallas, San Antonio, Austin, and Houston.
The full list of metros with the highest turnover between September 2024 and August 2025 is:
- Kansas City, Missouri
- San Antonio, Texas
- Indianapolis, Indiana
- Las Vegas, Nevada
- Dallas, Texas
- Nashville, Tennessee
- Austin, Texas
- Charlotte, North Carolina
- Houston, Texas
- St. Louis, Missouri
While each city has its own unique circumstances, certain patterns have emerged, particularly regarding the Texas metros. This aligns with the outlet’s November housing report, which shows that Southern markets are close to their pre-pandemic norms. The increase in inventory has led to greater buyer choice.
Reasons for Moving
Unlike the popular post-pandemic narrative, life issues such as retirement, job relocation, downsizing, and equity appreciation have overcome fears of being rate-locked. In many cases, where the equity is significant enough, forgoing a low interest rate has been a non-issue.
“People in San Antonio are monetizing appreciation and resetting life logistics, not panic selling,” Daniel Cabrera, owner and founder of Sell My House Fast SA TX, told Realtor.com. “They are selling to repay debts, relocate for their relatives, and escape the commute for more space.”
Downsizing is also playing a part, according to the report, which, coupled with rising insurance costs, means that in many instances, it’s cheaper to rent than to live in a large house that also needs maintenance.
Former Growth Markets Are Now Negotiation Markets
An increase in supply has helped lower prices and encouraged more people to move.
“For buyers, there are deals to be made,” Jason Gale, a Redfin Premier agent in New Orleans, told Real Estate News in October. “People who need to move are still out there house hunting, and they’re finding that it’s a good time to negotiate with sellers, especially for homes that have been on the market for longer than a few weeks. Most buyers are able to get a discount on the price or significant help with their closing costs.”
More Inventory Has Led to More Options
According to the National Association of Realtors (NAR), existing-home sales increased 1.2% in October, with month-over-month sales up specifically in the Midwest and South.
NAR chief economist Lawrence Yun said:
“Home sales increased in October even with the government shutdown due to homebuyers taking advantage of lower mortgage rates. First-time homebuyers are facing headwinds in the Northeast due to a lack of supply, and in the West because of high home prices. First-time buyers fared better in the Midwest because of the plentiful supply of affordable houses, and in the South because there is sufficient inventory.”
Specifically in the South, sales are up 2.8% year over year, with the median price up 0.3% from the same time last year.
Slower Price Growth Equals More Buyer Power
Rampant post-pandemic price growth, coupled with low inventory, froze the housing market, which appears to have thawed. Although sales have hardly been remarkable, stability is often an investor’s friend. In October, just 14 of the 50 most populous U.S. metros saw price drops, according to Redfin data, down from 37 metros dropping prices in July.
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“Many would-be homebuyers and sellers are paralyzed by high prices and economic uncertainty,” said Redfin senior economist Asad Khan in a press release. “Homebuying activity has stabilized at below-normal levels, and while selling activity has also slowed, there are still a lot more sellers in the market than buyers. That’s allowing the people who are moving ahead with home purchases to score discounts and other concessions from sellers.”
Redfin’s report estimates there are about 500,000 more home sellers than buyers in the market as of mid-November, tilting the market toward buyer discounts.
Smaller and Midwestern/Northeastern Metros Gaining Ground
As supply and demand dynamics shift, some smaller or midsized metros in the Midwest and Northeast are increasingly attracting buyers and investors, according to Realtor.com’s findings. Modest prices and stable demand are making them more attractive than overheated metros.
These so-called “refuge markets” include:
- Grand Rapids, Michigan
- St. Louis, Missouri
- Cleveland, Ohio
- Milwaukee, Wisconsin
- Pittsburgh, Pennsylvania
Additionally, 11 of the outlet’s hottest 25 markets identified in an October report were located in the Midwest, with six in Wisconsin, four in Illinois, and one in Ohio.
“Wisconsin, Ohio, and Illinois continue to stand out as affordable housing markets with strong local economies, drawing home shoppers who are seeking both opportunity and value,” Hannah Jones, senior economic research analyst at Realtor.com, said. “Markets where home prices sit below the national median, or below those of nearby major metros, have gained notable traction in recent years as affordability constraints weigh heavily on buyer demand.”
Listings in these markets sold 27 days faster on average than typical U.S. listings in October.
Final Thoughts: Strategic Moves for Investors in a Changing Market
Rather than a dramatic sea change, the current real estate market suggests a subtle shift in dynamics—more of a pat than a punch.
Consequently, investors don’t suddenly need to adopt risky strategies to free up cash; they should be liquid, nimble, and able to respond to greater market fluidity. When people move, opportunities arise, and for the first time in a while, people are moving.
Here are some levelheaded moves investors should make as the market changes course:
- Underwrite based on flat or modest price growth (instead of optimistic appreciation). Focus on long-term stability rather than short-term price swings.
- Negotiate seller credits or other concessions to improve cash flow or financing.
- Avoid thin-margin flips or BRRRRs. It’s not worth the risk.
- Target workforce housing. As back-to-office mandates come into effect, people will need to live closer to larger cities in supply-constrained neighborhoods.
The current real estate market is like a long-distance race: liable to change with fluctuating interest rates, inventory, and other economic factors. Placing yourself away from the pack, near the front, ready to make a move, is always a good strategy.
