Why Suburban Renting is Booming in 2025

The Shifting Face of the Suburbs

Once quiet commuter towns, today’s suburbs have evolved into thriving hubs for renters seeking space, affordability, and lifestyle flexibility. As of June 2025, over 200 suburbs now have more renters than homeowners. This shift is reshaping how Americans live, work, and choose where to call home. 

Why Suburban Renting Trends Are Gaining Momentum

Housing Affordability at a Breaking Point

With average home prices near $460,000 and mortgage rates hovering around 6.5%, homeownership is becoming further out of reach for many. In New Jersey alone, 39 suburbs have flipped to renter-majority status, emphasizing the broad impact of housing affordability challenges.

Suburban Rents Climbing Fast

Suburban rents, once a more affordable alternative to city living, are rising quickly. Analysts report that rent growth in the suburbs is now outpacing that of urban areas, driven by growing demand for larger homes and quieter neighborhoods

Lifestyle Shifts and Remote Work

Remote and hybrid work have transformed housing preferences. Without daily commutes, renters are prioritizing space, affordability, and quality of life; suburbs deliver on all three. Cities like Dallas, Boston, and Minneapolis are leading this trend, with large numbers of suburbs now dominated by renters.

The New Suburban Renter Profile

Suburban renting today caters to a wide range of lifestyles and priorities. Millennials, Gen Z, and remote workers are leading the shift, often choosing to rent as a flexible and intentional alternative to ownership. Since the pandemic, demand for single-family rentals has increased by 41%, compared to 26% growth for apartments. Communities designed specifically for renters are also expanding across the Sunbelt states, offering the feel of suburban homeownership without the upfront costs. For many, renting is no longer a short-term solution but a long-term lifestyle.

Financial Challenges Renters Face in the Suburbs

Even with more space and flexibility, suburban renters still face financial pressure. Zillow projects that single-family rents will rise another 2.8% in 2025, while multifamily rents are expected to increase by 1.6%. Fees for parking, pest control, or package handling can also add up quickly. These costs make credit building strategies more important than ever.

Why Credit Building Matters

Rent is the largest monthly expense for most, yet it rarely counts toward credit. RentReporters helps change that by verifying your rent payments and reporting them to Experian, Equifax, and TransUnion, allowing renters to build credit through payments they are already making. Since payment history makes up 35% of a FICO score, renters often see increases of 10 to 60 points in just 10 days. Turning rent into credit history is one of the easiest ways to build financial strength without taking on new debt. 

Preparing for Homeownership or Financial Stability

Many suburban renters are thinking long term. Reporting rent payments can help build the credit needed to qualify for a mortgage, lower car loan interest rates, reduce upfront rental costs, and improve overall financial flexibility. Whether someone plans to buy a home or continue renting, strong credit is the key to unlocking more options down the road.

Conclusion: Suburban Renting is a Smart Move

Renting in the suburbs is no longer just a temporary phase. It is a strategic lifestyle choice. As renters reshape suburban living, building credit through services like RentReporters turns monthly rent into an investment in your future.