Renting is increasingly popular in suburban areas as homeownership becomes increasingly unattainable for many. A recent analysis by Point2Homes revealed that from 2018 to 2023, rentership rose by at least 5 percentage points in 11 out of 20 suburbs surrounding major U.S. metro areas. Notably, 15 suburbs transitioned from predominantly homeowners to majority-renter communities during this time, impacting various regions, including the burgeoning Sun Belt metros like Dallas, Houston, and Miami, as well as Northeastern cities like Boston and Philadelphia.
In metropolitan areas such as Dallas, Minneapolis, Boston, Tampa, and Baltimore, the rate of renter growth in suburbs has outpaced that of urban centers. For instance, Dallas suburbs saw a 17.6% increase in renters, significantly higher than the 7.9% rise in the city itself. Additionally, affordability challenges have intensified, with mortgage rates near 7%, the highest since before the 2008 financial crisis. This financial crunch has led many potential homebuyers to feel priced out of the market.
Housing experts suggest that the increase in rental properties has provided access to suburban living for those who cannot afford homeownership. Simultaneously, developers are attempting to create compact suburban “downtowns” to cater to this demand, while renters like Mark and Andrew Decker express their struggles in affording homes in their desired areas. Advocacy groups note that rising rental markets may displace residents farther from urban conveniences, complicating access to transportation and job opportunities.
Despite these challenges, rental options in the suburbs remain appealing due to predictable costs and amenities, fostering a persistent interest in suburban living, potentially sustaining demand and pricing for both renters and buyers in these regions.
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