House prices are rising, but still remain affordable, in suburbs in popular, expanding metros
The median home price in Northeast Denver, a community outside of the Colorado capital, increased 27 percent last year to $270,000. According to Realtor.com, the city is the nation’s fastest-growing suburban neighborhood.
The site named 10 major cities with hot suburbs, based on number of households, home listings, list prices, and demand for homes. Suburbs of cities such as Dallas, Tampa, San Francisco, Raleigh, and Nashville made the list, several of which were exurbs of expanding metros.
Despite the increased popularity of urban living, the suburbs aren’t going away. From 2010 to 2017, households in the suburbs grew 7.9 percent nationally, while ones in urban areas only grew 6.6 percent. Price plays a factor: In eight of the 10 places on the list, the median house price was at least 20 percent cheaper in the suburbs than in the city.
“Most high-growth urban areas just don’t have enough land, so prices are higher and homeownership is typically lower,” says Jonathan Smoke, our chief economist. “It’s tempting to live in a walkable urban neighborhood … but the costs make it hard to afford, especially for large or growing families.”