Once a stronghold for U.S. homeowners, the suburbs of American cities are now ceding ground to renters, according to a report by Point2Homes.
Between 2018 and 2023, the data showed the number of renter households increased faster in the suburbs than the main city in five of the 20 largest U.S. metros, with 203 U.S. suburbs now dominated by renters due to affordability, mobility and the changing lifestyles of consumers.
“Some years, when buying a home seems mission impossible, renters will keep renting no matter their age and needs,” Point2Homes said in the report. “Other times, if market conditions are just right, some will take the leap and become homeowners, tipping the scales again. For many, and especially for Millennials and even Gen Zers, it’s a matter of cost. As home prices in urban centers soar — and mortgage rates, taxes and maintenance expenses rise alongside them — renting in the suburbs offers a more affordable path to space and stability.”
Meanwhile, remote work is another powerful driver, according to Point2Homes, with 68% of U.S. employers offering location flexibility as of late 2024, giving renters the ability to live farther from traditional job centers without sacrificing access to opportunity.
In 2025, the rental insurance market size is expected to reach $100.99 billion at a compound annual growth rate (CAGR) of 6.5%, according to The Business Research Company.
Growth during the period is attributed to the increasing trend of urbanization, growing awareness about the benefits of renters’ insurance, high incidences of property damage, growing supply of rental properties and legal requirements.
By 2029, the rental insurance market is projected to reach $128.73 billion at a slightly lower CAGR rate of 6.3%, driven by digital insurance platforms, awareness and education initiatives, integration with smart home technology, economic recovery and stability and collaborations with real estate and property management firms.
Major trends during the forecast period include growing demand for customizable policies, expansion of coverage options, increased focus on affordability, the rising importance of customer experience, sustainability and green initiatives, The Business Research Company said.
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