The rent is taking off in the suburbs, since the housing property remains beyond the reach of many possible buyers.
Between 2018 and 2023, the tenant increased by at least 5 percentage points by 11 of 20 suburbs surrounding the largest metropolitan areas in the United States, according to a recent analysis of Point2homes, a rental market research company.
During the same period, 15 suburbs went from being predominantly composed of housing owners to majority-alferns communities. The trend covers meters of rapid solar belt such as Dallas, Houston and Miami, as well as in cities of Northeast such as Boston and Philadelphia.
In five of those 20 main metropolitan areas, Dallas, Minneapolis, Boston, Tampa and Baltimore, the suburbs are winning tenants faster than the urban centers that surround, found points 2 of the points. The participation of the residents he rented increased in the Dallas suburbs by 17.6% from 2018 to 2023, while that rate increased only 7.9% in the city, with the nearby suburbs of Frisco, McKinney and Grand Prairie, each won more than 5,000 tenant homes during that period.
In 2018, it was more difficult to buy a house in Dallas County, where most of the city is located, than in the most suburban counties in the metropolitan area, such as those that include Frisco, McKinney and Grand Prairie, suburbs where the ranks of the tenants have increased faster than practically any other place, points of points. That is no longer the case: the understanding of the house is now more difficult in suburban counties surrounding Dallas than in Dallas County, shows the index of NBC News housing buyers.
The affordability of housing is a national problem that covers cities and suburbs equally.
The mortgage costs have increased abruptly from the pandemic, setting many possible buyers in all types of demand areas. The average interest rates in the popular mortgage loan of 30 currently are around a little less than 7%, levels not seen before the financial crisis of 2008. In such a difficult market, some housing experts say that the proliferation of rental properties has helped maintain suburban lifestyles accessible to people who otherwise could not pay them.
“You have your own land, you have children or you have a dog, and you want that space,” said N. Edward Coulson, professor at the University of California, Irvine, and director of his real estate center. “They get all that service to have a single -family house.”
Mark, a suburban on the outskirts of Chicago who asked to be identified by his first name to avoid the professional setback for weighing hot housing problems, said that the type of property he has rented for three years is out of budget for him to buy it. He estimated that many comparable properties in the area would cost 30% more on monthly housing payments than their current rental, and is considering leaving the area so that you can buy elsewhere.
“If I want to stay here, it’s basically not sustainable,” Mark said.
Andrew Decker, a tenant in Lake Villa, Illinois, halfway between Chicago and Milwaukee, said that his family would love to buy the property where they live now, which, according to him, was offered for $ 340,000.
“We would like to become our home forever if we could pay it, but it’s very expensive,” Decker said. “If they were to me and they told me that, ‘Hey, you can buy this house for 200 Grand today,’ I would throw the trigger tomorrow. I wouldn’t even doubt. But 340 is crazy.”
Tara Raguveer, who directs the tenant Federation of the Union of the Tenant Defense Group, said that the affordability problems that the suburban rent boom threcifies to push the people farther from the urban nuclei.
“As people move outside the city, they are further from transport, they could be further from employment, they could be living in homes that are not necessarily connected with other people like them, which affects things like child care, social security,” Raguveer said.
The owners, however, promote the benefits that come from renting in the ‘Burbs.
“The ability to have a payment that covers all its expenses in general, does not have to deal with the payment of the mortgage and housing insurance and perhaps the HOA and then many maintenance expenses, so it has been something that for many people has earned
Developers have also been creating different types of properties for suburban tenants, including multifamily complexes. Jay Parsons, housing economist and presenter of the podcast “The Rent Roll”, says the emergence of “Suburban Downtowns”, partially fed by the change of the pandemic era to remote work. These mixed use developments are generally aimed at offering younger families a balance between urban convenience and suburban comforts, he said.
“It can still be close to your work. It can be close to good restaurants and stores, but living in a suburban area where you still use a car, and probably has a rental that is more affordable than living in most cities,” Parsons said.
Coulson does not expect the appeal of the suburbs to fade soon, which could underpin prices in many of them for both buyers and tenants.
“If you work in the center, it is still an advantage to live in the center, but it is not such a great advantage” as it used to be, he said, now that remote work is still common, despite a continuous touch of mandates back to the office. “What this does is also increase the cost of living in the suburbs, because now more people want to live in the suburbs.”
“That is a dynamic that will have to solve a little more before we know the final impact on the suburban prices versus in the center,” he said.
