The Suburban Rental Boom: Why More Renters Are Moving Away from City Centers

The suburban rental market is undergoing a significant transformation, as more renters opt to live in the outskirts rather than city centers. This shift is driven by a combination of economic, demographic, and social factors that make suburban living increasingly attractive. From affordability and space to lifestyle preferences and work trends, multiple elements are converging to reshape the rental landscape in the United States.

Affordability: The Cost Advantage of Suburban Rentals

One of the primary reasons behind the suburban rental boom is affordability. In 18 out of the 20 largest U.S. metropolitan areas, renting in the suburbs is cheaper than in urban centers. On average, suburban renters save about 11% on rent. In high-cost cities like New York, this difference is even more pronounced, with suburban renters saving an average of $1,600 per month.

For many renters, particularly young professionals, families, and retirees on fixed incomes, these cost savings make a significant impact. By choosing suburban locations, tenants can allocate more of their income toward savings, investments, or discretionary spending, rather than spending a substantial portion of their earnings on rent.

Space and Amenities: A Key Draw for Renters

Suburban rentals often provide larger living spaces and enhanced amenities compared to urban apartments. The rise of single-family rentals (SFRs) and build-to-rent (BTR) communities has further fueled this trend, offering tenants:

Larger floor plans with multiple bedrooms and bathrooms
Private yards, ideal for families and pet owners
Garages for vehicles and additional storage
Access to resort-style amenities such as pools, fitness centers, and walking trails

Urban dwellers often face high rent costs for smaller apartments with limited access to these features. In contrast, suburban rentals provide a higher quality of life, making them an attractive alternative.

Changing Demographics and Preferences

Demographic shifts are also playing a pivotal role in the growing appeal of suburban rentals. Several key groups are driving this trend:

Millennials: As more Millennials enter their 30s and start families, their housing priorities are changing. They seek larger spaces, safer neighborhoods, and access to good schools—all of which are more readily available in the suburbs.
Baby Boomers: Many Baby Boomers are downsizing from homeownership but prefer suburban living over traditional retirement communities. Suburban rentals allow them to maintain an independent lifestyle while avoiding the responsibilities of home maintenance.
Gen Z Renters: Unlike previous generations that romanticized city living, many Gen Z renters appreciate the balance suburban life offers. With remote work opportunities and a desire for affordability, they are increasingly choosing suburban rentals over cramped urban apartments.

Remote Work and Its Impact on Rental Decisions

The COVID-19 pandemic accelerated the shift toward suburban living by reducing the need for proximity to urban job centers. With remote work becoming a permanent fixture for many industries, renters are no longer bound by long commutes and can prioritize affordability and comfort over location.

Companies have embraced hybrid or fully remote work models, allowing employees to choose homes based on lifestyle preferences rather than workplace proximity. As a result, suburban areas have seen a surge in demand from renters looking for spacious homes with home offices, outdoor areas, and a better overall work-life balance.

Education: A Driving Force for Families

Another compelling reason renters are moving to the suburbs is education. Suburban school districts tend to rank higher than their urban counterparts, offering superior educational opportunities for families with children.

Many parents prioritize school quality when choosing a rental home, making suburban neighborhoods with strong public school systems particularly desirable. This trend is expected to continue as families seek environments that provide their children with the best possible educational advantages.

Construction Trends: The Expansion of Build-to-Rent Communities

To meet the growing demand for suburban rentals, the build-to-rent sector is expanding at an unprecedented rate. Developers are actively constructing single-family rental communities designed specifically for long-term renters.

Current trends in the BTR sector include:

Over 110,000 single-family rental homes are currently under construction across the U.S.
Texas leads the way, with 21,800 BTR homes under development, followed by Arizona and Florida, each with nearly 14,000 units.
Phoenix is the top metro for BTR construction, with 13,100 single-family rentals in the pipeline.

This surge in construction ensures that suburban renters will have more options, offering well-planned communities with shared amenities and services that cater to modern rental preferences.

Quality of Life: A More Peaceful Living Environment

Beyond affordability and space, many renters are drawn to the suburbs for their overall quality of life. Suburban areas typically offer:

Lower population density, reducing noise and congestion
More green spaces and recreational areas
Safer neighborhoods with lower crime rates

These factors contribute to higher levels of life satisfaction, making suburban rental communities increasingly appealing to those looking for a quieter, more relaxed lifestyle.

Conclusion: A Long-Term Shift in the Rental Market

The combination of affordability, greater space, remote work opportunities, and changing lifestyle preferences is driving a major shift toward suburban rental markets. As more developers build single-family rental and build-to-rent communities, suburban living will continue to attract a diverse range of tenants, from young professionals and growing families to retirees seeking a low-maintenance lifestyle.

With demand continuing to rise, the suburban rental boom is not just a passing trend—it is reshaping the rental market landscape for years to come. Whether driven by economic necessity, lifestyle choices, or work flexibility, more renters are finding that the suburbs offer the perfect blend of affordability, comfort, and convenience.