NYC’s Surrounding Suburban Communities Becoming Majority Renter Occupied Areas
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New Jersey dominates the list, with cities like Harrison (81.1% renter households), Union City (79.6%), West New York (78.2%), Passaic (76.5%) and Elizabeth (74.6%) among the most renter-heavy suburbs in the 20 largest U.S. metros.
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Bound Brook, North Arlington, East Franklin, and Secaucus, NJ all flipped from owner- to renter-majority in just five years.
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Paterson and Elizabeth each added more than 3,500 renter households during the same period— among the highest suburban net gains from the metros analyzed.
It used to be that moving to the suburbs meant putting down roots — and putting down a mortgage. But that’s changing fast.
A new report from Point2Homes reveals that more and more suburbs are becoming renter-majority. In fact, in just five years,203 suburbsacross the country’s 20 largest metros have flipped, and now have more renters than homeowners.
Key findings:
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15 suburbs shifted from being owner-dominated to renter-majority in just five years. The East Coast is leading the charge, with suburbs near New YorkCity, Miami, Boston, Philadelphia, and Baltimore making the switch. Two Chicago suburbs are also joining in, fueled by rapid population growth.
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In 5 of the 20 largest U.S. metros, renter households are growing faster in the suburbs than in the cities themselves — with Dallas leading the way (18% growth in suburbs vs. 8% in the city). Minneapolis and Boston also saw suburbs outpace urban centers, while metros like Miami, Tampa, and Baltimore showed nearly equal growth in both areas.
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When it comes to net numbers, no suburb added more renter households than Frisco, TX, which gained over 10,000 between 2018 and 2023. Close behind, McKinney, TX; Woodbridge, VA; and Grand Prairie, TX, each added 5,000+, as more people looked for extra space.
Once homeownership strongholds, suburbs are ceding ground to the new housing reality: The renter-dominated suburb. Driven by affordability, mobility, and changing lifestyles, homes for rent are extending beyond the city and into what used to be definitive homeowner territory.
In America’s 20 largest metros there are nearly 1,500 suburbs with a population higher than 10,000. According to a recent analysis of U.S. Census data, 203 suburbs across these metropolitan areas are now renter-majority. In other words, more people lease their homes than own them in these communities. This change shows that the line between city and suburb continues to blur.
The change, however, is by no means linear. Some years, when buying a home seems mission impossible, renters will keep renting no matter their age and needs. Other times, if market conditions are just right, some will take the leap and become homeowners, tipping the scales again. The decision to rent in the city or the suburbs, however, has more going behind it: The suburb wins when the need for more space and privacy wins. What’s more, given the healthy rental inventory and massive new completions, especially in areas like the South and the Midwest, renters realize the suburb comes with more and better options.
Case in point, the number of renter-dominated suburbs has fallen compared to 2018, when a total of 233 suburbs were renter-majority. But, it remains high given that, traditionally, the suburbs were oases of homeownership away from the renter-majority urban spaces. Today, approximately 6.08 million households rent a suburban home in these areas, an increase of around 231,000 since 2018.
In Just 5 Years, 15 Suburbs Flip as Renter Households Surge
It used to be that the city was all about “work hard, play hard, rent while you’re at it,” and the suburb was relegated to the stage of settling down and leaving the renter days behind. Nowadays, suburban living is no longer reserved for those with a mortgage.
In an attempt to implement a more strategic direction when it comes to housing construction, developers are shifting their attention away from downtowns, urban cores, and main cities. Instead, they are focusing on expanding outwards, toward the towns and suburbs surrounding cities proper, to be able to provide renters with more space and better amenities.
As proof that renting in the suburbs is here to stay, in the last five years alone, 15 suburbs near the country’s major urban hubs have transitioned to become renter-dominated.
Banner Image: Suburbs. Image Credit – Michael Kahn
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