John: As the cost of homeownership soars across the country, renting has emerged as an increasingly popular alternative and not just in cities but suburbs, too.

An analysis of census data found a steady rise in the number of renters and suburbs surrounding the country's 20 biggest metropolitan areas.

Some of the big reasons, a shortage of affordable housing, coupled with the rising cost of homeownership.

Doug is a manager of business intelligence from a company that creates software for the real estate industry.

A big piece of this is affordability but are other factors driving this?

Doug: It is a significant piece.

This started since 2008 with the financial crisis, when there were a lot of evictions and home turnovers.

Exponentially the demands kept growing, but the supply did not.

Over the course of the last 10 to 15 years, this problem has been exacerbated and will continue to grow until we find reasonable solutions to the issue.

John: You call it a problem.

What is at issue?

What is the problem of people deciding to rent rather than by - - buy?

Doug: Prior to 2008, you would see a migration pattern of folks who rented, moving out, starting households and buying homes.

That is been abbreviated because of the cost of a home, the lack of supply, and the affordability of the home.

So what you have is demographic groups renting longer and not being able to purchase a home.

John: I know your report said of the 1500 suburbs looked at, 203 were majority renters.

Somewhere around military bases where we would expect a transient population, but was there anything common among the other places?

Doug: What you saw, typically student centers, academics, universities, in addition to the military.

People drive their roots deep and tend not to migrate great distances.

Migration patterns are down from what they were three years ago with the pandemic.

That mobility has decreased.

What people are looking at is where to find the best affordability within the general geospace.

John: You said the progression of starting out in the city, getting an apartment, moving to the suburbs and buying a home is changing.

Are demographics changing or is it just the people moving to the suburbs are renting rather than buying?

Doug: It is demographics.

Gen zers like urban cores.

They like the social environment, availability of restaurants and social amenities.

What we find with millennials is, they are looking for starting a household, to have children, looking for better school systems.

John: Other than improved school systems is there a change in the culture of suburbs?

Doug: There are and also there is pushback.

You have nimbyism, which means not in my back yard, they do not like to see rental communities established.

We have found through studies conducted by a myriad of people, that, the ability to create households via rental or purchase, adds to economic vibrancy in a given area.

It does not detract from it.

John: Builders and developers have noticed this trend and are focused on multifamily residences rather than single-family residences.

Could we reach the point where there is more choice, more inventory among multifamily residences instead of single-family homes?

Doug: We are already beginning to see that inflection in terms of the btr community, build to rent community.

That niche market has grown and continues to grow.

John: What would it take to change this trend?

Doug: It would take collaboration between governance and business.

Typically much of this is situated at the local level.

We see it as a collaboration of all three groups, not necessarily one group in general.

John: Doug, thank you.

Doug: Thank you, a privilege.

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