Homebuying is increasingly out of reach for many in the suburbs around Dallas. Due to this reality, many residents are pushed into renting homes that overwhelm their income levels. Mark, a thirty-year veteran and long-time amicable tenant, has rented a house for three years, but finds himself at a crossroads. He explained that remaining where he is just isn’t an option. This realization is causing him to consider relocating to a cheaper region.
This failed and unjust system has consequences that are felt far beyond Montgomery — especially in suburbs surrounding major metropolitan areas. Our analysis found that between 2018 and 2023, at least 15 close-in suburbs became majority-renter communities, compared to predominate homeowner communities. This trend illustrates the increasing challenge of affording housing in these suburbs as opposed to core urban areas.
In Dallas County, homebuying was previously harder than it was in the surrounding suburban counties. That too has flipped, with suburban areas now putting up more barriers for would-be buyers. Even Dallas’ suburban share of renters grew by an incredible 17.6%. The city of Dallas experienced a much smaller jump of only 7.9%. This acute change in affordability has forced many other residents including Mark to reevaluate their plans.
Andrew Decker, a tenant in Lake Villa, Illinois, said that spoke to him. He has lived in, and been offered the purchase of, his current property at $340,000 but believes that price is not viable. “We dream of turning this into our forever home,” he continued. The cost is too high for us to bear. Decker noted that he would eagerly purchase the property if it were priced at $200,000, stating, “If they were to come at me and tell me that, ‘Hey, you can buy this house for 200 grand today,’ I’d pull the trigger tomorrow. I wouldn’t even hesitate. But 340’s crazy.
This phenomenon of increasing rents and the lack of appreciation in home values is not unique to Dallas. In five of the 20 largest metro areas—Dallas, Minneapolis, Boston, Tampa and Baltimore—suburbs are drawing in renters at a breakneck pace. They’re growing faster than the big cities that engage them. Between 2018 and 2023, rentership increased by at least 5 percentage points in 11 out of 20 suburbs surrounding major U.S. metro areas.
Tara Raghuveer, who directs the national Tenant Union Federation, sounds the alarm on what’s behind this transition. “As people are moved out of the city, they’re further from transportation… which impacts things like child care and Social Security,” she explained. New suburban migration The new exodus from urban centers puts access to essential services and community connectivity in general at risk.
Jay Parsons, another housing market trends expert, tells us the creation of “suburban downtowns” is one of the biggest drivers in this migration. The remote work culture created by the pandemic has only exacerbated this trend. He noted that these communities provide residents with a high degree of access to jobs and services. They provide lower-income rents than what is typically found in downtown housing. Now you can stay connected to your job while living in the car suburbs. You can continue to be car dependent,” said Parsons.
Mark’s experience is a harbinger of the increasing difficulty of being able to buy a home in sought after communities. He figures that similarly-sized homes in his neighborhood would require monthly housing costs 30% more than he pays now in rent. This reality forces him to consider leaving his community for good in search of a place that makes financial sense.
George Ratiu is the National Apartment Association’s vice president of research. He stressed the more far-reaching impacts of changes occurring in the housing market. For example, he noted that homeownership is becoming more and more ‘un-affordable.’ Renting, on the other hand, gives people a real-world option to help control their budgets. “The ability to have one payment that covers all your expenses… has been something that for a lot of people has been worth it,” Ratiu noted.
Even with these major issues, most still believe in homeownership. While renters like you choose among limited options, the clock ticks and housing costs continue to increase for you and your neighbors. Suburban and urban housing markets are in a perpetual state of flux. Thousands more are now focused on finding a firm anchor after weathering an uncertain economy.