Skip to main content

Suburban Rental Prices Higher Than Urban Markets

May 19, 2017
The Mortgage Bankers Association (MBA) is taking aim at a bill before the California legislature that would force a rent cap on property owners

The grass may be greener in suburbia, but the rents are also much higher.
 
According to new data from Zillow, the median monthly cost of a suburban rental rose by 2.5 percent on a year-over-year basis, compared to the 2.3 percent uptick on the median cost of an urban rental. This is a significant difference from last year, when the median urban rental price increased by five percent year-over-year while median suburban rental prices were up three percent. And this goes beyond the multifamily environment—Zillow noted that 19 percent of all single-family homes in the U.S. are rentals, up from 13 percent in 2005.
 
"Because walkable urban centers close to amenities are typically a big draw for renters, you'd expect rents to rise faster in the city than in the suburbs—which is exactly what we've been seeing until very recently," said Zillow Chief Economist Svenja Gudell. "But a handful of factors are helping turn the tables and beginning to push suburban rents up at a higher clip. These include deteriorating rental affordability in expensive urban cores; new apartments, albeit high-end ones, opening downtown compared to relatively few in outlying areas; and preferences among some renters toward the space offered by single-family homes in the suburbs. Rents themselves are still lower in the suburbs, but if demand keeps growing for suburban rentals and supply continues to lag, that will also start to change. As more formerly urban renters move to the suburbs in coming years, we'll likely start seeing more apartment buildings and walkable amenities popping up in those communities." 

 
About the author
Published
May 19, 2017
Homebuilders Cheer Delay Of Trump Trade War

Canada and Mexico stave off tariffs on billions of dollars of materials crucial to the U.S. homebuilding industry

Feb 04, 2025
OCMBC President Arrested For DUI, Murder

Serene Vernon (Rosenberg) had three prior convictions, per a police report

Feb 02, 2025
Trump Fires CFPB Director Chopra

Chopra posts a letter to X with his final statements

American Heritage Lending Halts Funding Loans In Maryland

AHL suspended the ability to lock new consumer loans in Maryland, effective immediately

Jan 31, 2025
Katie Sweeney Joins Rocket Pro To Lead Broker Strategy, Advocacy

The former AIME chairwoman and CEO asks the broker community, particularly Rocket Pro’s brokers, to trust her. 

Jan 29, 2025
CoreLogic Chief Economist On Witnessing The Insurance Crisis Firsthand

"I could have lost all my equity,” says Selma Hepp, who lives and works on the frontline of housing's biggest challenge in 2025

Jan 20, 2025