Suburban Rent Surge: Why Renters Can’t Buy
Discover why renting is surging in the suburbs while homeownership slips further out of reach.This shift is driven by the primarykeyword of escalating mortgage rates, wich have dramatically increased the cost of buying a home across the nation. Regions like the Dallas suburbs are experiencing the fastest growth in rentership, with significant increases in renter households since 2018.Many prospective homebuyers are finding themselves priced out, making renting a more attainable option, especially with the secondarykeyword of “suburban downtowns” providing lifestyle alternatives. Tenant advocates express concern over community displacement,while landlords highlight the benefits of accessible,all-inclusive payments. News Directory 3 can offer further insight. Explore the full story and discover what’s next …
Suburban Rental Boom Driven by Affordability Crisis
Updated june 12, 2025
The American dream of owning a home is fading for many, leading to a surge in suburban renting across the nation. A recent study by Point2Homes, a rental market research company, reveals that rentership has increased substantially in suburbs surrounding major U.S. metro areas between 2018 and 2023. In some cases, suburbs have shifted from being predominantly homeowner-occupied to majority-renter communities.
The trend spans across the Sun Belt, including Dallas, Houston, and Miami, as well as Northeastern cities like Boston and Philadelphia. Dallas suburbs experienced the most dramatic shift, with a 17.6% increase in renters from 2018 to 2023, outpacing the city’s 7.9% growth. Suburbs such as Frisco, McKinney, and Grand Prairie each gained over 5,000 renter households during this period.
The rising cost of homeownership, fueled by increased mortgage rates, is a primary driver of this shift. Average interest rates on 30-year fixed home loans are hovering near 7%, levels not seen since before the 2008 financial crisis. This has priced out many prospective buyers, making renting a more accessible option.
N. Edward Coulson, a professor at the University of California, Irvine, said the proliferation of rental properties has helped keep suburban lifestyles accessible to those who otherwise couldn’t afford them. He added that renting a single-family home allows people to have their own land and space.
Mark, a renter outside Chicago, said he cannot afford to buy a comparable property to the one he currently rents. He estimates that monthly housing payments would be 30% higher if he were to purchase a similar home.
andrew Decker,a renter in Lake Villa,illinois,said he and his family would love to buy their current property,but the $340,000 price tag is too high. He said he would buy it immediately if the price were $200,000.
“if I want to stay here, it’s basically not tenable,” Mark said, regarding the high cost of homeownership in his suburban Chicago neighborhood.
Tara Raghuveer,who runs the Tenant union Federation,said affordability issues that have fueled the suburban rental boom threaten to push people farther from urban cores,possibly impacting access to transportation,employment,and social connections.
Landlords, though, emphasize the benefits of suburban renting.George Ratiu, vice president of research at the National Apartment Association, said that one payment covering all expenses, without the burden of mortgage payments, home insurance, and maintenance costs, is appealing to many.
Developers are also catering to this growing demand by building multifamily complexes and “suburban downtowns.” Housing economist Jay Parsons said these mixed-use developments offer a balance between urban convenience and suburban amenities, appealing to younger families seeking affordability and lifestyle.
What’s next
the trend of suburban renting is expected to continue as long as homeownership remains unaffordable for many. The rise of “suburban downtowns” may offer a solution by providing a mix of urban and suburban living at a more accessible price point. Though, tenant advocates remain concerned about the potential displacement of communities and the need for policies that promote housing affordability.