Traditionally, the city is the place you rent an apartment, and the ‘burbs are where you get a mortgage and live out the ’50s American dream in a house. But according to data collected by New York University’s Furman Centerand Capital One, the percentage of residents renting in the suburbs is sharply on the rise. And the overwhelming reason this is so is that more people can’t afford to rent in the city.
Researchers examined 11 major metropolitan areas in the U.S., and found that from 2006 to 2014 the renter population grew in all of them. Demand significantly outpaced supply as well.
Since 2006, there has been an increase of 22 million people renting in metropolitan areas, and according to the Wall Street Journal, 12 million of these renters are in the suburbs, not the city proper. When you look at how rent prices have exploded, the high rate of renters picking the ‘burbs makes sense. In Washington, D.C., for example, median rents went up 27%, yet renters in the greater D.C. suburbs were only hit with an 8% hike during this same time span. Overall, the average city median rent increased 5% as opposed to 2% in the suburbs, according to the Journal, and because city rents were largely more expensive to begin with, the suburbs have increasingly come to be viewed as a relative bargain.