In the past few years, more Americans have chosen suburban life over city living, according to researchers and industry reporting alike.
The shift, which began during the COVID-19 pandemic, is still gaining momentum – market researchers have called it the “rise of the suburbs” pointing to U.S. Census data that suggests more than half of Americans say they live in suburban communities.
Turns out, even years after the pandemic, suburbia’s appeal is holding strong. Here’s a look at why.
1. Affordability and Value
Harvard research suggests the suburban draw stems from housing affordability and a lower share of larger homes in city centers. Americans can buy bigger homes for smaller price tags in suburbia compared to major cities.
Twenty-one percent of homebuyers are moving back to the suburbs to get more home for their money, according to a National Association of Realtors poll.
Suburban homes are typically 23.2 percent less costly than large metro areas.
In places like New York City, the gap jumps to 49.5 percent.
Industry analysts note this push to suburbia is heightened in other high-cost places like LA, San Diego and Philadelphia.
Homes in city centers also have the smallest share of three of more bedrooms, especially within an affordable price range, the Harvard study found.
2. Millennial Homebuyers Want Room
Researchers note that U.S. homebuyers include two outsized cohorts – Baby Boomers and Millennials – who disproportionately impact national real estate averages. And it’s these groups that are moving to the suburbs in droves.
Millennials, now in their 30s and 40s, want:
To start families
Plant roots in communities with good schools
Have more space for their kids to grow up
To live closer to their aging parents and other family members
3. Hybrid Work is Here to Stay
For many, gone are the days of commuting to the office Monday to Friday. With more flexibility to head into the office once or twice a week (or month), more homebuyers are willing to settle down in the suburbs, away from business districts.
Forty percent of the U.S. is already working in a hybrid model
88 percent of employees say flexible working is essential to a fulfilling professional life
This suburban shift has helped businesses cut carbon emissions, save on the cost of maintaining large offices, and boost productivity and employee satisfaction. At the same time, it’s increased foot traffic in suburban communities, boosting local consumer spending by as much as $1.3 billion annually in the U.S.
4. Homebuyers Want a Better Quality of Life
The green space, the calm, the extra room around the house – academics have found that the suburbs are, indeed, tied to higher levels of happiness, a sense of meaning, and overall life satisfaction compared to city living.
City life is known to be more convenient with a string of amenities – gyms, restaurants, shopping, entertainment, grocery stores – all on your doorstep. Yet, homebuyers would rather have their spare bedrooms, backyard gardens, and cleaner air.
Researchers have zeroed in on precisely what homeowners want from their ideal property:
At least one ensuite bedroom
Enough storage throughout the home
Windows with plenty of natural light
Access to private outdoor space
One study even found natural light with a view of a beautiful landscape helped homeowners reduce fatigue, relax, and boost focus and mood. You’re not getting that from city views.
Plus, suburbs offer a lower cost of living, better schools and afterschool care for kids, and lower crime rates.
5. The Launch of Suburbia 2.0
Research has found that amenities have improved in the suburbs in response to the influx of young families moving in – they pointed to walkable “downtown” areas, shopping districts, and a boom in dining and entertainment options, blending suburban life with urban perks.
The suburbs are no longer that sleepy commuter town you used to think of – they’ve transformed over the years into vibrant, bustling communities.
