In More Metros Than You’d Think, Suburbs are Now More Expensive Than the City

The American suburbs, once a bastion of affordable homeownership, are losing that status as middle-class home buyers find themselves increasingly priced out of even suburban areas, according to an article by Jake Safane in Investopedia. “When comparing price-per-square foot, the suburbs are more expensive in 53% of the 100 largest metro areas in the U.S., and 65% of these suburban areas are more expensive on an overall basis, due in part to larger homes in the suburbs versus cities, according to Realtor.com listing data.”

As more Americans seek out affordable housing in suburban and exurban areas, costs are rising. “While options still exist, finding an affordable suburban home often involves making significant trade-offs, like in home size, location, or condition,” Safane adds. Low housing inventory, including both existing and new homes for sale, and high mortgage rates are also contributing to rising costs.

The article notes that “many desirable areas have seen big increases in additional housing costs that you might not consider when first looking for homes. For example, insurance costs have been rising almost everywhere in the U.S., with one-third of U.S. ZIP codes seeing a 30% increase in home insurance prices from 2021-2024.” In places with high risks for disasters like wildfires such as California, insurers are pulling out altogether. People wanting to buy homes in suburban areas are more likely to have to make tradeoffs such as lower square footage or homes that need more work.