Rent prices rose across the U.S. in 2022, motivated by a historically strong housing market and rental vacancy rates that hit a 37-year low. That trend continues into early 2023, spurred by suburban rent growth in many metropolitan areas.
In January, the median rent price in more than half (56 percent) of the most populous metros in the country rose at a lower rate than the suburbs around them, with suburban rent prices growing almost twice as fast as in the metro’s core city. The average year-over-year (YoY) rent price in suburban communities increased by 8.43 percent between January 2022 and January 2023 compared to the average YoY rent increase for core metros at 4.35 percent.
Suburban rent growth fueled by space, amenities and savings
While suburban rent prices are increasing at a higher rate, they still have a way to go before they match the cost of renting in the city center. Rent is still an average of $375 per month cheaper in the suburbs. And saving money on rent matters to U.S. renters.
Almost half (49 percent) of renters surveyed in the National Multifamily Housing Council (NMHC) and Grace Hill’s 2022 Renter Preferences Survey Report said that lower rent prices prompted their desire to move. Another 29 percent wanted amenities like an in-unit washer and dryer, air-conditioning, soundproof walls and high-speed internet, while 28 percent wanted more living space.
The suburbs, where prices are generally lower and space is more abundant, met many of these needs. And renters responded by signing new leases in these areas. This increase in demand put upward pressure on rent prices.
The Q4 Rent. Migration Report confirmed these findings with renters preferring to move within their own neighborhood or city. If that wasn’t possible, their next choice was to relocate to a suburb even if that meant crossing state lines.
The metros in this survey were pulled from the 50 largest metros by population, as listed on this site’s Rent Report. Surveyed cities included at least 30 listings during the month of January 2023. The top 23 cities are detailed below.
Metros where a high proportion of suburbs are rising faster than the core
Six metros surveyed in this study saw rents rising faster in at least 83.33 percent of the suburbs relative to the core city. Half of these metros are located in the South. The other half are in the Midwest.
Rent prices have been trending downward in three of the metros that showed strong suburban rent growth (Minneapolis, Chicago and Houston) for months. These three markets also logged year-over-year rent price increases lower than the 4.77 percent national median increase in December 2022.
Cleveland-Elryia, OH
Cleveland–Elryia was the only metropolitan area in this survey to show suburban rent growth in each suburb included in the study. Rent prices in all 11 of Cleveland’s suburbs averaged 23 percent growth year-over-year to a mean price of $1584.30. This rise was fueled by explosive growth in Cleveland Heights, which showed the largest increase (171 percent) recorded in this survey. Time will tell if these results are a long-term trend or a statistical outlier.
Rents metro-wide actually dropped 0.01 percent. Renters paid an average of $1623.06 in the city of Cleveland.
Dallas-Fort-Worth-Arlington, TX
In the Dallas–Fort Worth–Arlington metro, it’s more expensive to live in the suburbs. Suburban rent prices averaged $1,614.92, compared to $1,609.36 in the city of Dallas.
Rents in the suburbs are getting more expensive too. Prices in 21 of 23 (or 91.3 percent) suburban communities outpaced growth in the city center. While Dallas’ mean rent price decreased by 7 percent, suburban rents increased by 7 percent on average.
Minneapolis-St. Paul-Bloomington, MN
Rents in nearly 86 percent of Minneapolis–St. Paul–Bloomington suburbs rose faster relative to its core. On average, Minneapolis suburban rents rose by three percent to reach $1,505.81 between January 2022 and January 2023. Overall YoY rent prices fell 8 percent in the city of Minneapolis during the same period, ending at $1,377.50.
The suburban rent price growth runs counter to a year of falling prices across the metro. This Minnesota metro saw the largest year-over-year rent decrease (8.5 percent) of any city surveyed between December 2021 and December 2022.
Chicago-Naperville-Elgin, IL
Rents in the Chicago–Naperville–Elgin metro fell last year as well, dropping 3.6 percent between December 2021 and December 2022. The city of Chicago also saw a downward trend in January 2023, when rents slid 6 percent to an average price of $1,961.26.
But rent prices in 84.62 percent of Chicagoland suburbs are increasing at a faster rate than in the core metro. The suburban rent growth rate averaged 19 percent during this survey period. Still, suburban renters paid slightly less on average at $1,950.21.
Houston-The Woodlands-Sugar Land, TX
Rent price growth in 10 out of 12 (or 83.33 percent) of Houston–The Woodlands–Sugar Land suburbs outpaced the core metro in this survey. The average suburban rent price ticked up 6 percent to an average rent price of $1,423.03 per month.
That’s higher than the $1,422.48 average price in the city of Houston. Average rent in the core city dropped 3 percent year-over-year between January 2022 and January 2023. That’s a continuation of last year’s numbers, when rent prices fell 4.6 percent YoY between the months of December 2021 and December 2022.
Nashville-Davidson-Murfreesboro-Franklin, TN
The community of Nashville–Davidson-Murfreesboro–Franklin also saw 83.33 percent (or five out of six) of its suburban communities record larger rent increases than its core metro. Rents were up 17 percent on average in the suburbs compared to 9 percent in the city of Nashville.
This community was the only one in the top six to show positive growth in the core city. Suburban rents remain more affordable in this community, averaging $2,115.49 in the suburbs compared to $2,325.61 in Nashville proper.
Middle proportion of suburbs rising faster than the metro
This middle section contains 11 metropolitan communities where suburban rent growth outpaced rent prices in the city center. The high-growth suburban cities in this section make up 46.15 percent to 80 percent of the suburbs in their respective metropolitan areas.
The cities on this list also show greater geographic diversity. Five (45.45 percent) are located in the West. Three are in the South, two are in the Northeast and one is in the Midwest. Many are also expensive, so lower metro-wide prices will likely come as a relief to renters.
Of the 11 metros listed, six ranked among the Top 10 Most expensive metropolitan areas in the U.S., according to Rent.’s September 2022 survey. They include San Francisco-Oakland-Berkeley, Boston-Cambridge-Newton, Los Angeles-Long Beach-Anaheim, San Diego-Chula Vista-Carlsbad, Seattle-Tacoma-Bellevue, and Denver-Aurora-Lakewood.
- Boston–Cambridge–Newton, MA: Of the 15 suburbs in the Boston–Cambridge–Newton metropolitan area, 12, or 80 percent, saw rent prices grow faster than the city of Boston. Rent prices in the suburbs rose 5 percent on average to reach a mean rent price of $3,407.37. Prices in the city of Boston dropped 7 percent year-over-year, a much-appreciated price break for renters in the third most expensive metropolitan area in the country.
- Austin–Round Rock–Georgetown TX: Four out of five (or 80 percent) of Austin-Round Rock-Georgetown suburbs grew faster than the city of Austin as well. Rents soared 14 percent on average to a mean of $1,588.59 in the suburbs. That surpassed Austin’s price of $1,555.87, which represented a 5 percent decrease from a year earlier. Metro rents also fell 2 percent YoY between December 2021 and December 2022.
- Atlanta–Sandy Springs–Alpharetta, GA: Most (76.19 percent) of the Atlanta-Sandy Springs-Alpharetta suburbs saw rent prices rise faster than the city of Atlanta. Prices in the city’s suburbs ticked up 5 percent on average year-over-year, bringing suburban rent prices to $1,979.91 a month. Despite the increase, that’s still substantially cheaper than prices in the city of Atlanta at $2,230.35. Overall rent prices dropped 1 percent in the city of Atlanta between January 2022 and January 2023.
- Denver–Aurora–Lakewood, CO: Three-quarters of the suburbs in the Denver-Aurora-Lakewood metropolitan area grew faster than the city of Denver. Rents increased just one percent in Denver, while the surrounding suburbs saw a 6 percent growth in rent prices on average to a mean price of $2,221.81. Denver was the tenth most expensive metropolitan area in the nation in September 2022, when the national median rent price soared 9.7 percent over the previous year.
- San Diego–Chula Vista–Carlsbad, CA: Rents in San Diego-Chula Vista-Carlsbad’s core city rose 7 percent during this survey period, compared to 13 percent rent growth in its suburbs. Five of its seven suburbs (71.43 percent) saw rent prices increase faster than the city of San Diego. This moderate YoY rent increase probably feels quite manageable to renters in the sixth most expensive metro in the U.S., where rent prices have increased 9.50 percent between September 2021 and September 2022.
- Seattle-Tacoma–Bellevue. WA: Rents are increasing faster than the core city in 66.67 percent of Seattle-Tacoma-Bellevue suburbs. The average suburban rental price rose 3 percent year-over-year to hit $2,496.83 in January 2023. Rent price growth in the city of Seattle held relatively steady with a 1 percent increase. That’s lower than the 3 percent increase at the end of Q3 2022, when the community was the eighth most expensive metropolitan area in the nation.
- Philadelphia–Camden–Wilmington, PA, NJ, DE, MD: Renters in 63.64 percent of Philadelphia-Camden-Wilmington suburbs (which are spread out across four states) saw their average rent price increase at a higher rate than the city of Philadelphia. Suburban rent grew 6 percent on average, pushing the mean rent price up to $1,896.63. Rent prices in Philadelphia were slightly lower at $1,861.34. Rents in the city decreased by 3 percent during this survey period.
- Los Angeles–Long Beach–Anaheim, CA: Speaking of large suburban districts, 11 of 19 (or 57.89 percent) of the suburbs in the sprawling Los Angeles-Long Beach-Anaheim metro saw bigger rent price hikes than the city of Los Angeles. Rent prices in the suburbs rose 5 percent on average to reach $3,039.08 a month. (Suburban rent prices actually topped Los Angeles’ average rent of $3,035.78.) Year-over-year rent prices increased at a slightly lower rate (3 percent) in the city of Los Angeles in January 2023. This comes after YoY prices fell 1.4 percent in the nation’s fifth most expensive metropolitan area in December 2022.
- Indianapolis–Carmel–Anderson, IN: Rent prices are spiking in Indianapolis-Carmel-Anderson. Rents in the city of Indianapolis jumped 14 percent year-over-year. The suburbs saw even stronger rent growth of 19 percent year-over-year. This pushed the average suburban rent price to $1,395.77, easily surpassing Indianapolis’ price of $1,277.41. Just over half (57.14 percent) of Indianapolis suburbs saw their rent prices increase more quickly than the core city. This upward trajectory builds upon a trend that began last year. Rents in the metro increased by 16.3 percent in 2022, far higher than the national median at 4.77 percent.
- San Francisco–Oakland–Berkeley, CA: Just under half (47.06 percent) of San Francisco-Oakland-Berkeley suburbs saw rent prices rise faster than the city of San Francisco. Rents rose 4 percent in the City by the Bay between January 2022 and January 2023. That’s on par with the median increase nationally, but it’s far less than the 9.9 percent increase logged in the second most expensive metro in the country at the end of Q3 2022.
- Baltimore–Columbia–Towson, MD: Rent prices in 46.15 percent of Baltimore–Columbia–Towson suburbs rose faster than the city of Baltimore during this survey period. Suburban rent growth averaged 5 percent and pushed rents in the suburbs up to $1745.56. Suburban rent now costs more than Baltimore’s average at $1,631.09. The cost of rent in the city of Baltimore rose 6 percent between January 2022 and January 2023.
Lowest proportion of suburbs rising faster than the metro
The four communities where the lowest proportion of suburbs showed rent increases are also found throughout the country. They include two of the 10 most expensive metros in the country and metropolitan areas that saw prices rise less than the national median in 2022.
- Charlotte–Concord–Gastonia, NC, SC: Renters in about a third of Charlotte-Concord-Gastonia suburbs (37.5 percent) paid more in rent than their counterparts in the city of Charlotte. Rents here rose 11 percent on average in these suburban communities, which are found in both North and South Carolina, compared to 12 percent in Charlotte proper.
- Phoenix–Mesa–Chandler, AZ: About a third (33.33 percent) of Phoenix–Mesa–Chandler suburbs recorded rents that are rising faster than the city of Phoenix. But rent prices are actually down 2 percent on average in the suburbs and dead even at zero percent in Phoenix.
- Miami–Fort Lauderdale–Pompano Beach, FL: Renters in 25 percent of Miami–Fort Lauderdale–Pompano Beach suburbs saw rents rise more quickly than renters in the city center. Suburban rent prices increased 14 percent on average during this survey period and 13 percent in the city of Miami.
- New York–Newark–Jersey City, NY, NJ: The New York-Newark-Jersey City metro holds a whopping 49 suburbs. Just seven of them (or 14.29 percent) saw rent price hikes outpace Manhattan suburban rents — which grew 11 percent on average — propelling rents outside the city center to $3,421 during this survey period. But that’s still cheaper than the average price ($4,387.16) in the most expensive metro in the United States.
The Takeaway
Rent prices continued to rise in 2022. But those gains weren’t evenly distributed. As work-from-home policies and legacies of the pandemic continue to make life outside of core metros attractive, renters are taking advantage. The result is surging suburban markets that are quickly closing the price gap between themselves and the metro’s urban core.
