Between 2018 and 2023, the trend of renting in U.S. suburbs has accelerated significantly, reshaping traditional housing patterns. According to a recent Point2Homes report, rentership increased by at least five percentage points in 11 of the 20 largest metropolitan suburbs, with 15 suburbs flipping from owner-majority to renter-majority status during this period. Currently, 203 suburbs in the largest U.S. metros have more renters than homeowners, marking a major shift in American housing dynamics.
Approximately 6.08 million households now rent suburban homes, marking an increase of about 231,000 since 2018. The Dallas–Fort Worth metro area is at the forefront of this trend, with suburbs such as Frisco adding over 10,000 new renter households and both McKinney and Grand Prairie each gaining more than 5,000 renters. Other suburbs experiencing significant rentership growth include Woodbridge, VA, as well as several around Boston. In the Boston metro area, suburbs like Quincy saw an increase of 3,500 renter households, while Brookline and Watertown have shifted to renter-majority populations. Notably, suburban renter households in Boston’s metro area grew by 7%, outpacing the city’s 5% increase and highlighting the faster growth of suburban renting compared to urban cores.
Factors Driving the Shift
Affordability Challenges – Rising home prices and mortgage rates have made homeownership increasingly unattainable, especially for first-time buyers. Many suburbs, once affordable alternatives to cities, have seen prices climb, pushing more people toward renting as a financially viable option. Renting requires less upfront capital and offers greater flexibility amid uncertain economic conditions.
Demographic and Lifestyle Changes – Younger generations, including millennials and Gen Z, are delaying home purchases due to student debt, career mobility, and lifestyle preferences. Remote work has further enabled people to live farther from city centers without sacrificing job opportunities, making suburban rentals attractive for those seeking more space and privacy.
Evolving Suburban Amenities – Suburbs have transformed from mere commuter towns into vibrant communities with urban-style amenities, walkable neighborhoods, and growing local economies. These improvements make renting in the suburbs more appealing, as renters can enjoy the benefits of suburban living without the long-term commitment of buying a home4.
Investor Influence – Institutional investors have increasingly purchased single-family homes in suburbs to convert them into rental properties, expanding the rental housing supply. This trend has contributed to the growth of rentership in areas that traditionally had low rental availability.
Regional Highlights
Texas Suburbs – Frisco leads with over 10,000 new renter households, followed by McKinney and Grand Prairie, reflecting the state’s rapid population growth and housing demand.
East Coast – Suburbs around New York City, Miami, Boston, Philadelphia, and Baltimore have seen significant renter population increases, with 15 suburbs transitioning to renter-majority status. For example, Boston suburbs like Quincy, Brookline, and Watertown have experienced notable rental growth.
Military Bases – Some suburbs such as Fort Meade, MD, and Camp Pendleton South, CA, show nearly 100% renter shares, though this is due to government housing rather than market trends.
The rise in suburban rentership is reshaping community dynamics. Increased demand for rentals can drive up rents, challenging affordability even in traditionally less expensive areas. Renters tend to move more frequently than homeowners, potentially affecting community stability, school enrollment, and local economies. This shift also creates opportunities for developers, property managers, and investors focusing on suburban rental markets.
Local governments may need to adapt zoning laws, infrastructure, and public services to accommodate a more transient population and ensure quality of life for both renters and owners. The growing preference for renting suggests a long-term change rather than a temporary market fluctuation.
With homeownership becoming less accessible due to economic factors and changing preferences, suburban renting is poised to continue its growth. Expect to see more purpose-built rental communities, innovative lease options, and enhanced focus on renter experience. Companies involved in suburban rental housing, including REITs and property management firms, are likely to benefit from these trends.
The suburban rental surge reflects deeper shifts in American housing preferences driven by affordability, demographics, and lifestyle changes. The suburbs are no longer just homeowner havens but are evolving into diverse rental communities that redefine modern living.
