Data Centers and the American Housing Market

Realtor.com research found that the share of U.S. home sales occurring within five miles of a large data center has more than doubled from 0.67% in 2018 to 1.5% in 2026 and could reach roughly 2.3% by 2027. The expansion is increasingly moving into rural and lower-income communities: the typical new large data center in 2026 is surrounded by 70% fewer homes per square mile than in 2017. Despite concerns about noise, infrastructure and utility costs, Realtor.com's analysis found no measurable difference in home price performance between neighborhoods where data centers opened and comparable areas without them.

The rapid expansion of data centers is creating economic activity while bringing new infrastructure, housing and community considerations to markets that may have little previous experience with large-scale development. Real estate professionals, homebuilders, utilities, financial institutions, contractors and local service businesses have an opportunity to help residents navigate the changes and new needs that accompany development in these communities.