Why Suburbs Are Growing Faster Than Urban Markets
Digested from “Data Differs Between Urban Core, Suburbs”
Axiometrics (9/8/15) Sorter, Amy Wolff
As of 2013, suburbs began to surpass urban markets in rent growth as downtowns experienced an increase in supply following the Great Recession. Although cities are bouncing back as the markets continue to absorb supply, rent growth in the suburbs surged to nearly 6 percent — almost twice that of urban areas.
Millennials have been flocking to suburban markets for their affordability, and investors have seen the value in these markets as well because they’re less crowded. Strong examples of burgeoning suburbs include Aurora, Colo., outside of Denver and Arlington, Texas, which lies within the hot North Texas market of Dallas-Fort Worth. Both markets have seen an influx of millennials as a result of job growth and attractive lifestyle elements.
Urban and suburban markets are expected to see rent growth increase into 2016 as renters continue to absorb new supply.