Renters Are Beginning to Outnumber Homeowners in Suburbs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
A new report found that 15 suburbs across the United States have shifted to see a majority renter status, reflecting major changes in the housing market between 2018 and 2023.
Many other areas also experienced a boom in renter populations during the same time period.
Why It Matters
The trend followed years of escalating home prices and affordability challenges, with new U.S. Census data showing that renters now outnumber owners in 203 suburbs of the nation's 20 largest metro areas.
As of 2023, 203 out of nearly 1,500 U.S. suburbs with populations over 10,000 were renter-dominated, according to a new report by Point2Homes. This total fell from a peak of 233 suburbs in 2018, highlighting both rapid growth and some fluctuation as market conditions, development, and demographics changed.
Rising home prices, stagnant wage growth, and limited inventory have made renting in suburbs attractive for populations previously expected to buy homes in these areas, according to DoorLoop's 2025 housing statistics.
A sign advertising units for rent is displayed outside of a building in Manhattan on April 11, 2024.
A sign advertising units for rent is displayed outside of a building in Manhattan on April 11, 2024.What To Know
Between 2018 and 2023, 15 suburbs outside major U.S. cities experienced more than half of their households switching from owning to renting, with notable shifts in suburbs surrounding New York City, Miami, Boston, and Baltimore.
Meanwhile, communities such as Frisco, McKinney, and Grand Prairie, all in Texas, experienced significant growth in renters. Frisco, a Dallas–Fort Worth community, added over 10,213 new renter households from 2018 to 2023, according to Point2Homes.
Approximately 6.08 million households currently rent suburban homes in these large metros, an increase of around 231,000 since 2018.
This partially resulted from developers prioritizing build-to-rent single-family homes in suburban locations, responding to high demand for space and amenities. Challenges of homeownership—such as soaring prices and tightened lending—have made owning less accessible for younger and lower-income Americans.
Between 2018 and 2023, the cost of homeownership surged, driven by mortgage rates that climbed to nearly 8 percent by fall 2023, according to Hannah Jones, senior economic research analyst at Realtor.com. Home prices also remained at or above pandemic-era highs across much of the country.
"As a result, homeownership became increasingly unattainable for many households," Jones told Newsweek. "Simultaneously, builders responded to the shifting market by ramping up investment in multifamily construction, which expanded the rental supply. The combination of rising housing costs and increased suburban rental availability led many households to choose renting in the suburbs over buying a home."
Renter household growth has been especially pronounced in the South and Midwest, such as in Dallas-area suburbs, where rental households rose by 18 percent, surpassing the city's 8 percent growth rate.
Suburbs around Minneapolis and Boston exhibited similar patterns, a reversal of traditional expectations where cities, rather than suburbs, drew the majority of renters.
The median age of U.S. renters is now 39, compared to 56 for homeowners. The median income for suburban renters, at $42,500, lags significantly behind that of homeowners, who earn an average of over $86,000.
Racial disparities persist, with Black and Hispanic households making up a higher proportion of renters.
Another piece of the puzzle is that an increasing number of Americans want mobility, and renting presents that option.
"In today's world, renting can make more sense for a lot of people," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "Just looking around my own neighborhood, I've seen families move in, stay for a year or two, and suddenly they're gone—transferred across the country, and a 'For Sale' sign is up the next day. Texas has become a magnet for that kind of churn."
What People Are Saying
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Simply put, the cost of ownership in many of these locations is just too high, especially for younger, mobile residents. With a home, it's not just about the monthly mortgage, which is more expensive due to higher interest rates. It's about the down payment, property tax, and all the other odds and ends financially of ownership that serve as barriers to many."
Hannah Jones, senior economic research analyst at Realtor.com, told Newsweek: "This trend underscores just how challenging it has become for the typical U.S. household to purchase a home. Ample rental supply has helped ease pressure on rents in many parts of the country, making renting an increasingly attractive option."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "It reflects a growing problem: housing affordability is under pressure. Some cities are being overwhelmed by migration and simply don't have the housing stock to absorb it. Others, especially in the South, are experiencing the opposite. But when economic opportunity moves in, real estate trends shift fast."
Nationwide title and escrow expert Alan Chang told Newsweek: "In many cases, renting was the only financial path forward due to the lack of affordable homes to purchase. City life is not what it used to be, as recent years saw an uptick in crime and civil unrest. This made suburban neighborhoods a more attractive option, especially for those with younger children.
Noemi Konta, a communications strategist for Point2Homes, told Newsweek: "Developers have responded to this demand by building more rental stock outside traditional city centers—especially in areas where there's room to create the kinds of communities today's renters are looking for.
"So it's no surprise that we're seeing a more mixed tenure landscape in the suburbs: these areas are no longer just for homeowners, but for a broad and growing renter population as well."
What Happens Next
As affordability challenges and changing lifestyle demands persist, analysts project continued growth in renter-majority suburbs, with developers and policymakers likely to reassess zoning, infrastructure, and community services.
"Renting may still be pricey, but it offers flexibility if residents have to relocate and entry into communities they would otherwise be unable to afford if ownership was the only option," Beene said.
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