Picket Fences for Rent: 100+ Suburbs Transitioned to Majority Renters in Last Decade

Renters are now in the majority in 103 suburbs that were previously homeowners’ territory 10 years ago, and 57 more suburbs are expected to follow suit over the next five years. Many of these suburbs belong to the subways of Miami, Washington, DC, and Los Angeles, with famed Beverly Hills, California, among those that have shifted.

The very definition of suburban living has been rewritten over the past decade as the suburbs of the country’s 50 largest metros have gained 4.7 million people since 2010 – 79% of which are renters, according to the latest data from the US census. Today, about 21 million people rent a suburban home in America’s 50 largest subways, 3.7 million more than 10 years ago. Additionally, between 2010 and 2019, the number of suburban renters increased by 22%, a figure that overshadows the 3% increase in suburban homeowners over the same period.

As a result of these number changes since 2010, tenants have claimed majority ownership in 103 suburbs, while only four suburbs have shifted to majority ownership during the same period. Additionally, the latest census data shows that nearly two in five people in today’s suburbs are renters, which is an average share of 39% in the suburbs of our largest subways.

Majority tenant suburbs increase by 69% in 10 years

Over the past decade, migration to the suburbs has grown rapidly: the number of suburban areas where tenants are the majority has increased by 69%. Now, following the move to the majority of tenants in these 103 suburbs, there are a total of 242 tenant-dominated suburbs out of 1,105 suburbs analyzed in our 50 largest metropolises.

According to census data, most renters are Millennials and Gen Z looking for housing options that better fit their budget, as 55% of suburban renters are under 45 with a median household income of about $ 50,000.

Dr Kenneth Laundra, an associate professor of sociology at Millikin University, said today’s suburbs were a lot different from the “baby boomer fantasy land” that it was.

“We have reinvented the American dream of a modern, more diverse society where people have fewer children and marry much later in life (if at all), and where most of the good job opportunities / careers need to be flexible. “ he said.

3 subways lead the trend, amassing 38% of new tenant-dominated suburbs

Almost 40 of the suburbs that have grown to the majority of renters in the past decade belong to just three subways: Washington, DC (14); Miami (13); and Los Angeles (12).

The largest of the three subways, Los Angeles, is also home to one of the world’s most famous suburbs, which is now predominantly rented. Specifically, about 51% of people living in Beverly hills, california, are tenants – the result of a steady increase in the share of tenants over the past 10 years. Here, people living in rented homes have a median income of $ 81,000, one of the highest of the 103 tenant-majority suburbs.

However, when it comes to household income, the top spot belongs to another suburb on our list in the eastern part of the country. In the Washington, DC, metropolitan area Merrifield, VA, was a majority owner suburb 10 years ago, but a lot has changed since then. Today, this thriving community with an urban feel has the largest share of tenants in the 103 suburbs (64%), as well as the highest household income at $ 98,000, nearly double the national median income of suburban tenants. And, as the city has grown over the past decade, so has its tenant population, which has grown by 87%. In fact, some even consider him to be one of the best places to live in Virginia.

Further south, in the Miami subway, the suburb of Doral, Florida – located near the Miami airport – has become dominated by renters thanks to a dramatic 83% increase in its renter population. This makes Doral the third largest tenant area nationwide, surpassing 30,000 tenants over the past decade. The popularity of the city could be related to the fact that it ranks third amongbest small town to start a small business In US Plus, its affordable cost of living and 13 mile proximity to downtown Miami make Doral a very attractive suburb to rent a home.

Below, check out all of the suburbs that went from owner to tenant status in Washington, DC; Miami; and the Los Angeles subways.

The new wave: 57 other suburbs should switch

Meanwhile, dozens of other suburban areas are approaching the 50% threshold and will soon become majority tenants as well. In fact, we estimate that an additional 57 suburbs will be dominated by renters over the next five years if their share of renters continues to grow at the same rate. Notably, the pandemic has further extended this trend, having triggered an acute need for more living and breathing space – what the suburbs traditionally offer – as more Americans try to make the most of the new trend of working from home.

According to Dr Laundra, many people will take advantage of the flexibility offered by remote working in the post-COVID era – to the benefit of the suburbs closest to urban areas.

“With the increase in remote work, short-term projects and ‘side activities’, there is every reason to believe that the future will be a more transitory and migratory existence. Most of this migration will be towards cities and urban landscapes, where even suburbs will cluster most closely with urban areas ”, he said.

To that end, most of the suburbs that should switch are in California and Florida. But, we can also see a few in Georgia, Maryland, Missouri and Ohio. Specifically, Maple Heights, Ohio – in the Cleveland metro – is the suburb with the highest probability of transitioning to the majority of tenants the earliest (if its current rate of growth continues). Here, the share of renters has nearly doubled over the past decade (up 87%), reaching 47% in 2019. Eleven more, including Redan, GA, Hazel Park, MI, Glen Cove, NY and Oakland Park, FL are on their way to becoming suburban tenants within a year.

Suburbs with the fastest growing tenant share

Since 2010, the rental market has been developing in places that were once dominated by owners. Specifically, the largest increases in tenant share were in a number of Midwestern suburbs and were led by Maple Heights, Ohio, where tenant share rose 87%. The second was Eastpointe, ME – a bunkhouse located a short drive from Detroit that recorded a record 83% increase in renters. In the table below, find out which suburbs experienced the strongest growth in renter share for the decade.

Most popular rental suburbs by metro

Use the arrows to see the most tenanted suburbs in each metro and how their tenant shares have changed since 2010:

Methodology

• RENTCafé is a nationwide apartment search site which makes it easy for renters to find apartments and houses for rent across the United States.
• Data source: US Census Bureau, ACS five-year estimates for 2010 and 2019, population data.
• Figures reflect population and population changes, not households.
• For the purposes of this report, urban areas are considered to be the cities that define the name of the metro. All others are considered suburban areas.
• Suburban mapping was performed by RENTCafé using geographic definitions from the US Census Bureau to identify suburbs in metropolitan areas across the country, excluding central cities.
• Our research only covers the 50 largest US subways in terms of population, as well as suburbs with at least 5,000 residents at the start of the decade (2010).