White picket rents: Tenants are flooding the suburbs where they can't afford to buy
Renting is taking off in the suburbs as homeownership remains out of reach for many would-be buyers.
Between 2018 and 2023, rentership surged by at least 5 percentage points in 11 out of 20 suburbs surrounding the largest U.S. metro areas, according to a recent analysis by Point2Homes, a rental market research company.
During the same period, 15 suburbs went from being predominantly composed of homeowners to majority-renter communities. The trend spans fast-growing Sun Belt metros like Dallas, Houston and Miami as well as Northeastern cities like Boston and Philadelphia.
In five of those top 20 metro areas — Dallas, Minneapolis, Boston, Tampa and Baltimore — the suburbs are gaining renters faster than the urban centers they surround, Point2Homes found. The share of residents who rent surged in the Dallas suburbs by 17.6% from 2018 to 2023, while that rate rose just 7.9% in the city itself — with the nearby suburbs of Frisco, McKinney and Grand Prairie each gaining over 5,000 renter households apiece during that period.
Back in 2018, it was harder to buy a home in Dallas County, where most of the city sits, than it was in the metro area's more suburban counties, like those including Frisco, McKinney and Grand Prairie — suburbs where the ranks of renters have swelled faster than virtually anywhere else, Point2Homes found. That's no longer the case: Homebuying is now more difficult in the suburban counties surrounding Dallas than it is in Dallas County itself, the NBC News Home Buyer Index shows.
Housing affordability is a nationwide problem spanning cities and suburbs alike.
Mortgage costs have risen sharply since the pandemic, pricing out many prospective buyers in all sorts of in-demand areas. Average interest rates on the popular 30-year fixed home loan currently hover just under 7%, levels not seen since before the 2008 financial crisis. In a market this tough, some housing experts say the proliferation of rental properties has helped keep suburban lifestyles accessible to people who otherwise couldn't afford them.
"You have your own land, you have kids or you have a dog, and you want that space," said N. Edward Coulson, a professor at the University of California, Irvine, and the director of its Center for Real Estate. "They get all that amenity from having a single-family home."
Mark, a suburbanite just outside Chicago who asked to be identified by his first name to avoid professional blowback for weighing in on hot-button housing issues, said the type of property he has rented for three years is out of budget for him to buy. He estimated many comparable properties in the area would cost 30% more in monthly housing payments than his current rent, and he's considering leaving the area so he can purchase someplace else.
"If I want to stay here, it's basically not tenable," Mark said.
Andrew Decker, a renter in Lake Villa, Illinois, halfway between Chicago and Milwaukee, said he and his family would love to buy the property where they live now, which he said was offered to him for $340,000.
"We would like to make it our forever home if we could afford it, but it's just so expensive," Decker said. "If they were to come at me and tell me that, 'Hey, you can buy this house for 200 grand today,' I'd pull the trigger tomorrow. I wouldn't even hesitate. But 340's crazy."
Tara Raghuveer, who runs the tenant advocacy group Tenant Union Federation, said affordability issues that have fueled the suburban rental boom threaten to push people farther from urban cores.
"As people are moved out of the city, they're further from transportation, they might be further from employment, they might be living in homes that are not necessarily connected to other people like them, which impacts things like child care, Social Security," Raghuveer said.
Landlords, however, tout the benefits that come from renting in the 'burbs.
"The ability to have one payment that covers all your expenses generally — you don't have to deal with the mortgage payment and the home insurance and maybe the HOA and then a lot of maintenance expense, so on — has been something that for a lot of people has been worth it," said George Ratiu, vice president of research at the National Apartment Association trade group, which represents rental operators.
Developers have also been building different types of properties for suburban tenants, including multifamily complexes. Jay Parsons, a housing economist and host of "The Rent Roll" podcast, points to the rise of "suburban downtowns," partly fueled by the pandemic-era shift to remote work. These mixed-use developments are typically aimed at offering younger families a balance between urban convenience and suburban amenities, he said.
"You can still be close to your job. You can be close to nice restaurants and shops but live in a suburban area where you're still using a car, and you still have probably a rent that's more affordable than living in most downtowns," Parsons said.
Coulson doesn't expect the appeal of the suburbs to fade anytime soon, which could prop up prices in many of them for buyers and renters alike.
"If you work downtown, it's still an advantage to live downtown, but it's not as great an advantage" as it used to be, he said, now that remote work remains commonplace — despite an ongoing drumbeat of return-to-office mandates. "What that does is also raise the cost of living in the suburbs, because now more people want to live in the suburbs."
"That's a dynamic that's going to have to work itself out a little bit more before we know the final impact on suburban versus downtown pricing," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
8 hours ago
- USA Today
2026 Cadillac Optiq-V: 519-HP electric SUV hits 60 MPH in 3.5 seconds
Cadillac's V-series performance line goes electric with a 73% power increase to the brand's new Optiq compact SUV. The Optiq-V accelerates to 60 mph in 3.5-seconds and goes on sale this fall. Priced at $67,300, plus $1,495 destination charge, the Optiq-V will compete with sporty compact SUVs from Mercedes-AMG, BMW M Sport and Lexus F-Sport. Based on what we know now ― price, looks and features ― it could be a formidable competitor. In addition to a whopping 219 horsepower increase from two new electric motors, the all-wheel-drive Optiq-V gets continuously adaptive ZF shock absorbers and aerodynamic upgrades. The V-series, now in its fifth generation, accounts for about 10% of Cadillac sales. 2026 Cadillac Optiq-V Key figures More power and performance drive modes The Optiq-V's twin electric motors ― one on each axle for AWD ― are the ones used in Cadillac's midsize Lyriq EV. They're bigger than the base Optiq, which produces 300 hp and 354 pound-feet of torque. The V's 10-module battery is the same size at the base Optiq. The Optiq-V gets unique performance software, including: Ambient lighting complements drive modes. ZF continuously adaptive shocks and Brembo front brake calipers are standard. All-season or summer 21-inch tires are available. Key features Accent colors and V-logos The V-package also includes a black roof. Other visual touches include blue exterior accents, optional red or blue front brake calipers that have the V-series logo, which is repeated inside out. The V gets two exclusive colors: Magnus Metal Frost and Deep Ocean Tintcoat. Blue seat belts and seat backs are available. Luxury vehicles: 2025 Cadillac Escalade adds EV style, 55-inch screen, power doors A carbon fiber package includes a rear spoiler and front valence. Cadillac will sell the Optiq-V in the United States, Canada, Mexico and the Middle East. It'll be the first General Motors vehicle with a factory-installed NACS charging port for access to Tesla DC chargers. An adapter will be available for CCS ports. 2026 Cadillac Optiq-V at a glance 2026 Cadillac Optiq-V at a glance All-wheel drive five-seat luxury performance SUV Base price: $67,300 (All prices exclude $1,450 destination charge) On sale: Fall 2025 Power: Two electric motors, one on each axle Output: 519 hp; 650 pound-feet of torque Transmission: Single-speed automatic Battery: 85 kWh lithium-ion Charging time: 240v: 18-31 mph; DC fast charge: 70 miles in 10 minutes. 0-60 mph: 3.5 seconds Wheelbase: 116 inches inches Length: 190 inches Width: 84 inches including mirrors Height: 65 inches Passenger volume: 100.1 cubic feet Cargo capacity: 26 cubic feet behind second row, 57 behind first row Towing capacity: None Curb weight: 5,445 pounds Assembled in Ramos Arizpe, Mexico Contact Mark Phelan: mmphelan@ Follow him on Twitter @mark_phelan. Read more on autos and sign up for our autos newsletter. Become a subscriber.
Miami Herald
15 hours ago
- Miami Herald
Why More Boomers Are Deciding to Rent
Baby boomers are redefining the rental market, a new study has found, with millions more older Americans now renting homes than was the case a decade ago. Over the past 10 years, the number of renters aged 65 and older has surged by nearly 30 percent, adding 2.4 million senior renters across the country-by far the largest growth of any age group, according to new research conducted by Point2Homes. While the number of renters declined in other age groups, particularly those aged 18 to 54, the number of seniors opting to rent has boomed. Past generations viewed homeownership as a hallmark of independence, but today's older adults are embracing the flexibility of renting. Downsizing, relocating to warmer climates, and avoiding the burdens of home maintenance are just a few of the more positive reasons behind the trend. But rising housing costs, inflation, and limited affordable inventory also play a critical role. As more seniors navigate retirement on fixed incomes, renting is becoming not only a practical alternative, but in many cases, a financially imperative one. The reasons behind the growing number of senior renters are varied, a mix of both lifestyle choices and financial necessity. "Seniors value the flexibility renting provides, which can allow them to downsize, move to better locations, or avoid the responsibility that comes with owning a home and its expenses," Alexei Morgado, a Florida realtor and CEO of Lexawise Real Estate Exam Preparation, told Newsweek. "Owning a home can take a lot of physical energy and money. When renting, you can simply enjoy life without worrying about major repairs, the uncertainty of property taxes, or if your home will lose value or be hard to sell." Shifting cultural attitudes toward aging and independence are also influencing this trend. "In the past, homeownership was viewed as a key indicator of independence in retirement," says Morgado. "The cultural shift in the thinking surrounding aging has moved rapidly, however, and seniors no longer feel as though homeownership is a mainstay of independence and a comfortable life in retirement." He notes that the COVID-19 pandemic accelerated this rethinking. "Seniors began to focus on flexibility and ease rather than stability and predictability, which is often associated with homeownership," Morgado said. "Many seniors have begun seeking smaller properties or apartments in more desirable areas away from their long-time homes and may prefer urban and suburban environments even if there is additional cost or a long-term rental lease. "In this way, renting allows for added freedom of movement if they feel they need to move or relocate." The study found that many senior renters are relocating to warmer climates, particularly in Florida, which is well-known for its large retirement community. Other southern states, such as Louisiana and Texas, are also experiencing an increase in the number of graying renters. In Baton Rouge, the percentage of properties rented by older Americans has boomed by 88.7 percent over the last ten years. Similar numbers are reported in Jacksonville, Florida, and Round Rock, near Austin, Texas. But for many, the switch to renting isn't just a matter of lifestyle-it's a financial necessity, Morgado explained. "The gap between owning and renting is widening, especially for seniors who rely on a fixed income. Home prices have skyrocketed in many parts of the country over the last 10 years with continued high mortgage interest rates," he said. "Rapid changes in housing demand mean that local areas with very limited affordable housing options have both renters and former homeowners looking for an affordable lifestyle. Seniors that once owned homes are now renting for value." Steve Sexton, CEO of Sexton Advisory Group, agrees. "This trend is fueled by both convenience and necessity; however recent economic uncertainty is the more likely driver of seniors renting in retirement," Sexton told Newsweek, noting that many retirees live on fixed incomes that have failed to keep pace with rising housing costs and inflation. "Utilities, insurance, property taxes, and maintenance costs associated with owning a home continue to increase, while Social Security and pensions struggle to keep up," he said. This is exacerbated by a lack of affordable homes on the market, even for those who may prefer to own, Sexton said, a problem that is getting worse over time. As a result, "for many seniors, renting offers a more predictable and/or simplified budget in which they don't have to account for repairs and certain housing expenses." Yet the underlying issue of housing affordability remains a serious concern. A 2024 report by the Joint Center for Housing Studies found that more than 40 percent of renters aged 65 and older spend more than 30 percent of their income on rent, the threshold at which the U.S. Department of Housing and Urban Development considers a household "cost burdened." "The availability of affordable housing, however, is a glaring reality for many seniors," Morgado said, noting that it's "a barrier obstacle to seniors maintaining their independence." Boomers having to rent out of financial necessity is likely to continue. For now, most adults aged 65 and older are homeowners, according to the Joint Center for Housing Studies at Harvard University. However, more than one in five older households, some 7 million, choose to rent, according to the 2023 Housing America's Older Adults study by JCHS. Jeff Lichtenstein, CEO and broker at Echo Fine Properties, said the trend "will get worse in the next decade," with "inflation being the main culprit." "With increased costs coming from tariffs and with cuts in the new bill and from DOGE, it puts seniors in a tough situation," he told Newsweek. "In the next decade, there will be an explosion of baby boomers in that age group. As one loses a spouse or looks at financing, there should be more of a need to rent." Related Articles Gen Z Is Significantly More Afraid of This Trend Than Older GenerationsSocial Security Claims SkyrocketIt's Not Gold-Digging, but Gen Z Will Marry for Money, Predicts ExpertGen Z's Trauma Therapy Compared to Millennials, Boomers 2025 NEWSWEEK DIGITAL LLC.
Fast Company
18 hours ago
- Fast Company
Housing market map: Zillow just released its updated home price forecast for 400-plus housing markets
Want more housing market stories from Lance Lambert's ResiClub in your inbox? Subscribe to the ResiClub newsletter. Heading into the year, Zillow economists forecasted that U.S. home prices were likely to rise 2.6% in 2025. However, this year, the housing market—in particular in the Sun Belt—was softer than expected and Zillow has made several downgrades to its forecast for national home prices. This week, newly released data from Zillow shows that U.S. home prices have decelerated to a year-over-year increase of just 0.4%. Zillow economists now expect U.S. home prices to decline by 0.7% between May 2025 and May 2026. 'With inventory up nearly 20% over the previous year, buyers had more options in May than at any time since July 2020. Despite higher sales, sellers still outnumber buyers,' wrote Zillow economists. 'This gives buyers more time to decide and more power in negotiations. Zillow's market heat index shows a balanced market nationwide, one that's a lot more buyer-friendly than in recent years. Competition among buyers declined to the lowest level seen in May in Zillow records, reaching back through 2018.' Not only do Zillow economists predict soft national home price growth this year, but they're also predicting that the housing market will only see 4.1 million U.S. existing home sales in 2025. That would mark the third-straight year of suppressed existing home sales. For comparison, in pre-pandemic 2019, there were 5.3 million existing home sales in the U.S. Zillow economists added: 'Home values have fallen in 22 of the 50 largest metro areas over the past year, and sellers cut prices on almost 26% of listings nationwide—another May high in Zillow records. Homes that sell typically do so in 17 days, about four more than last year and only two days fewer than pre-pandemic averages.' Among the 300 largest U.S. housing markets, Zillow expects the strongest home price appreciation between May 2025 and May 2026 to occur in these 10 areas: Atlantic City, New Jersey → 3.4% Kingston, New York → 2.7% Knoxville, Tennessee → 2.6% Pottsville, Pennsylvania → 2.5% Torrington, Connecticut → 2.4% Rochester, New York → 2.2% Syracuse, New York → 2.1% Fayetteville, Arkansas → 2.1% Rockford, Illinois → 2.1% Yuma, Arizona → 2.0% Among the 300 largest U.S. housing markets, Zillow expects the weakest home price appreciation between May 2025 and May 2026 to occur in these 10 areas: Houma, Louisiana → -9.4% Lake Charles, Louisiana → -8.9% New Orleans → -7.2% Alexandria, Louisiana → -6.7% Lafayette, Louisiana → -6.6% Shreveport, Louisiana → -6.4% Beaumont, Texas → -6.2% San Francisco → -5.5% Midland, Texas → -5.3% Odessa, Texas → -5.3% While Zillow expects home prices across most of Florida to be flat over the coming year, ResiClub remains skeptical. After all, Florida has experienced a significant increase in active inventory and months of supply over the past year, which could signal potential pricing weakness. Indeed, .
