Renters Are Taking Over the Suburbs: Calculator

 

“In 15 major U.S. metro suburbs, renter households more than doubled between 2018 and 2023.

 

Suburbs are traditionally a refuge for people who can’t afford to own a home in a big city. But according to a new study, renters are beginning to dominate even the suburbs, leading developers to turn their attention away from urban centers.

 

“Once homeownership strongholds, suburbs are ceding ground to the new housing reality: The renter-dominated suburb,” the report stated.

 

Using U.S. Census Bureau data from the 20 largest U.S. metros and surrounding suburbs with a population of more than 10,000, researchers at Point2Homes found that the number of renter households in these areas grew to roughly six million by 2023, up by 231,000 from 2018.

 

Among the roughly 1,500 suburbs included, 203 were renter majorities in 2023, which was actually down from a peak of 222 in 2018. Still, renter households more than doubled over this five-year period in 15 major suburbs, which explains the overall increase nationwide. In fact, according to the study, the number of rental homes in the suburbs of five major cities grew faster than in the cities themselves: Dallas, Minneapolis, Boston, Tampa, Fla., and Baltimore.

 

Three suburbs had a nearly 100 percent rental share, but market conditions had little to do with it: Rentals prevailed because they served the short-term housing needs of adjacent military bases: Fort Meade, Md.; Camp Pendleton South, Calif.; and Fort Lewis, Wash. But the following six suburbs, when ranking by renter share, all topped 80 percent: Cudahy, Calif. (Los Angeles), University, Fla. (Tampa), Clarkston, Ga. (Atlanta), Addison, Texas (Dallas), Harrison, N.J. (New York City), and Webster, Texas (Houston).

 

Much of the growth reflects a surge in the build-to-rent industry, which reached an all-time high in 2024, according to Point2Homes, with 39,000 new single-family rentals completed. That was a 16 percent increase over 2023, and much more than the roughly 6,000 or 7,000 that typically came to market during prepandemic years.” [1]

 

The trend of renters increasingly occupying suburban areas is a significant adaptation to high housing prices, among other factors.

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Here's why:

 

    Affordability: Buying a home, especially in competitive urban markets and now increasingly in some suburban areas, has become financially challenging due to rising prices, high mortgage rates, and stagnant wage growth. Renting provides a more accessible and often cheaper entry point into these communities. In fact, the average monthly mortgage payment for a new home can be significantly higher than the average apartment rent in some areas.

    Lifestyle & Flexibility: Renting offers greater mobility for individuals and families who may need to relocate for work or other reasons, without the burden of selling a home.

 

Suburbs also appeal to renters seeking more space, better schools, and a quieter environment compared to city living, according to Newsweek and Realtor.com.

    Remote Work: The rise of remote work has broadened housing options for many, freeing them from the constraints of commuting to a city center and allowing them to prioritize factors like affordability and space when choosing where to live.

    Developers Responding: Developers are recognizing the growing demand for suburban rentals and are increasing the construction of new rental projects in these areas, offering attractive amenities and potentially more space than city apartments.

 

Essentially, the suburban rental trend highlights a shift in the housing landscape where traditional patterns of homeownership in the suburbs are changing. Factors like high housing prices in cities and now in some suburbs, changing lifestyle priorities, and remote work are making renting a viable and attractive option for a wider range of people who might have traditionally sought to buy homes in these areas.

 

 

1. Renters Are Taking Over the Suburbs: Calculator. Colon, Shayla.  New York Times (Online) New York Times Company. Jul 17, 2025.