Which Suburbs Are Renters Moving to?
A general trend among renters, especially Millennials, seemed to be a preference for urban cores over suburban areas, a choice sustained both by a decrease in homeownership rates and rising levels of construction in city areas. However, suburban areas charm renters with lower rent prices, more space, and the promise of a more tranquil lifestyle. Multiple factors—mostly of personal choice and individual lifestyle change—has led to an increased interest in suburban rentals over the past years. As more and more people gravitated towards suburbs, such areas have seen their numbers increase, triggering rapid development due to gains in renter population.
photo 401K 2012/2013 via Flickr
Using data from Yardi Matrix and the U.S. Census Bureau, apartment search website RentCafé set off to find the suburbs with the highest increase in renter population and see how much this growth influenced rent prices. As a general trend, the places with the highest increase in renters also saw their rental rates go up faster.
Occupying the number one spot on this list, Chamblee, GA saw an 156% increase in its rental population over a 5-years period. As expected, rents also went up here, with a 44% increase over 5 years. Atlanta metro dominated the top 10, not only taking the first position, but having 5 entries in the top. Norcross followed Chamblee closely, with a 148% increase in renters, while Clarkston, Johns Creek, and Lilburn made the top with 97%, 79%, and 67% increases respectively.
Suburbs from two other metros, Dallas and Tampa, completed the top 10, among which Flower Mound, TX and Riverview, FL saw increases of over 100%. Riverview saw more than 14,100 new renters over the 5-year period, registering the highest net increase in renter population. With rapidly developing business scenes, as well as a boost in apartment construction, these two suburbs prove to be dream destinations for renters looking to relocate to a suburban area.
While many Millennials enjoy the convenience and excitement of the big city, life in the suburbs also has its charms. Living in the outskirts is a good fit for remote workers who don’t have to spend so much time commuting, for people who want to start a family and want good neighborhoods for their kids, or simply for those who are tired of the city hustle.
With an increasing flow of renters into the suburbs, rents are likely to rise further, but at some point higher rents and longer commutes may lead to a leveling-off of demand growth for suburban rentals.
Here you can check out the full study and compare these suburbs with others from the 20 largest US metros: https://www.rentcafe.com/blog/apartment-search-2/trending-suburbs/.
Author: Pankaj Deb
