Suburbs See a Renter Boom as More Americans Leave Cities Behind

In a shifting housing landscape, a growing number of Americans are choosing to rent homes in the suburbs rather than buy or stay in big cities. Driven by remote work flexibility, rising home prices, and the rising cost of urban living, renters are turning to suburban neighborhoods in record numbers.

According to a recent study by Point2Homes that analyzed U.S. Census Bureau data, 203 suburbs surrounding the 20 largest metro areas in the country now have more renters than homeowners a dramatic demographic shift that highlights how the pandemic and economic pressures are reshaping American housing trends.

A New Suburban Reality: Renters in the Majority

Gone are the days when the suburbs were mostly for homeowners and white picket fences. Today, renting has become the norm in many suburban communities. Of the nearly 1,500 suburbs surveyed (each with a population above 10,000), over 200 now have majority-renter populations.

While a few high-renter suburbs like Dale City, Virginia, or Killeen, Texas, owe their rental rates to the presence of nearby military bases, others show purely economic and lifestyle-driven shifts. Take Cudahy, a suburb of Los Angeles, where an astonishing 88.2% of the population rents. Other high-renter suburbs include Addison, Texas (83%), Harrison, New Jersey (82.7%), and Clarkson, Georgia (83.4%).

Even more telling: 15 suburbs that were previously homeowner-majority flipped to renter-dominant between 2018 and 2023. Many of these are in East Coast metro regions such as Boston, Baltimore, and Miami, as well as two in the Chicago area Blue Island, Illinois, and Gary, Indiana.

Why Renters Are Heading to the Suburbs

Several key forces are driving this migration. First, the normalization of remote work has untethered professionals from their offices, allowing them to live further from dense urban centers. Without the need for a daily commute, people can now prioritize space, affordability, and quality of life over proximity to downtown business districts.

Second, housing affordability has become a serious barrier in major cities. Skyrocketing prices, limited inventory, and higher mortgage rates have locked many potential buyers out of homeownership altogether. Renting in the suburbs has become a practical and often more spacious alternative.

Another advantage? Flexibility. Renting allows younger Americans, especially Millennials and Gen Z, to adapt to job changes, family needs, or economic shifts without being locked into a long-term mortgage.

Where Renters Are Growing Fastest

Among the 20 largest metro areas analyzed, five showed faster rentership growth in the suburbs than in the city itself. Dallas leads the trend by a wide margin, with suburban rental household growth outpacing urban growth by nearly 10%.

Other metro areas following the same pattern include:

• Minneapolis (+3%)
• Boston (+2.1%)
• Tampa and Baltimore (each +0.5%)

These shifts show that suburban areas are not just absorbing renters but transforming to meet their needs with more apartment communities, mixed-use developments, and rental-friendly zoning.

Interestingly, not all metros saw this dynamic. In Chicago, for instance, suburban rental growth lagged the city by 8.5%, despite the area containing multiple renter-majority suburbs.

Dallas Suburbs Top the Nation in Net New Renters

When it comes to sheer volume of new renters, Dallas-area suburbs dominate. Frisco, Texas added over 10,200 renter households between 2018 and 2023 the most of any suburb nationwide. McKinney followed with 6,100 new renters, and Grand Prairie added 5,200.

Other high-growth suburbs include:

• Woodbridge, Virginia (5,400+ new renter households)
• Katy and Irving, Texas, also showing major increases

These growth figures underscore the broader trend of Texas suburbs becoming magnets for housing-seeking renters due to job opportunities, space, and relatively affordable rents.

What This Means for the Future of Housing

The rising tide of renters in the suburbs reflects more than just affordability it signals a cultural shift. The traditional model of suburban homeownership is giving way to a hybrid landscape where long-term renters demand the same amenities and quality of life as homeowners.

For developers, landlords, and city planners, this transformation presents both challenges and opportunities. Suburbs must now plan for denser housing, better public transportation, and services tailored to a mobile, diverse renter population.

At the same time, these trends may drive more investors and developers to focus on build-to-rent communities, mixed-use developments, and flexible housing solutions in fast-growing suburbs across the U.S. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.