R
enting is becoming increasingly popular in suburban areas as homeownership remains out of reach for many potential buyers. Between 2018 and 2023, the number of renters surged by at least 5 percentage points in 11 out of 20 suburbs surrounding major US metro areas, according to a recent analysis by Point2Homes. In fact, 15 suburbs shifted from being predominantly homeowner communities to majority-renter communities during this period.

    This trend is evident in both fast-growing Sun Belt cities like Dallas and Miami, as well as Northeastern cities like Boston and Philadelphia. In five of the top 20 metro areas - Dallas, Minneapolis, Boston, Tampa, and Baltimore - suburban areas are gaining renters faster than their urban centers. The share of residents who rent increased by 17.6% in the Dallas suburbs between 2018 and 2023, compared to a 7.9% increase in the city itself.

    Housing affordability is a nationwide issue that affects both cities and suburbs. Mortgage costs have risen sharply since the pandemic, pricing out many prospective buyers. As a result, some housing experts say the proliferation of rental properties has helped keep suburban lifestyles accessible to people who otherwise couldn't afford them.

    For example, Mark, a suburbanite outside Chicago, said he would struggle to afford a comparable property if he were to buy it. He estimated that monthly housing payments for such a property would be 30% higher than his current rent. Andrew Decker, a renter in Lake Villa, Illinois, also expressed frustration with the high cost of homeownership.

    Developers have responded by creating more compact "suburban downtowns" to meet demand outside city centers. However, some experts warn that affordability issues may push people farther from urban cores, exacerbating transportation and employment challenges. Landlords argue that renting in the suburbs offers benefits like a single payment covering all expenses, reduced maintenance costs, and increased space.

    As remote work becomes more common, the appeal of suburban living is unlikely to fade anytime soon, which could prop up prices for both buyers and renters. Housing economist Jay Parsons notes that "suburban downtowns" are being built to offer younger families a balance between urban convenience and suburban amenities.