Suburban migration didn’t end with the pandemic. If anything, we’ve seen a long-term shift in American priorities concerning housing, which has led to an increasing number of households moving out of the city and into the suburbs.
When people head out to the ‘burbs, real estate investors would do well to follow. We have a saying in real estate that we look for the path of progress. Sometimes, this is revitalizing or rezoning areas to include new housing or businesses. Sometimes, it is simply the trend of where people are moving.
8 Reasons Investors Benefit from Suburban Rental Properties
Recent trends and long-term market dynamics demonstrate that this trend is here to stay. Here’s why:
1. Shifting priorities
Since the COVID-19 pandemic, living preferences have shifted noticeably. Many have moved from dense urban areas to the suburbs, seeking more space, larger yards, and a quieter environment. This shift, driven by the desire for square footage and flexibility, has boosted demand for suburban rental properties.
Suburban demand didn’t end with the pandemic, though. There’s always been a flux between urban and suburban appeal, but there’s no doubt where the preference lies today. Because demand lies in single-family suburban homes, investors can expect higher rental rates, less turnover, and increased portfolio stability.
2. Affordability
Houses are more expensive than ever. Naturally, people are on the hunt for a deal! Urban housing markets often have higher living costs, making city apartments unaffordable for many. Suburbs, however, offer a better balance of affordability and quality of life.
At the very least, renter households get more bang for their buck in the suburbs. So do investors!
Suburbs benefit from increased land availability and housing inventory. That naturally helps keep prices in check.
3. Better price-to-rent ratios
Because they’re more affordable, suburban properties often have a better…