Are suburbs more expensive than living downtown?

City vs suburb living

While the differences in living in the city versus a suburb vary from region to region, there are distinctions between the two that hold pretty much everywhere. One is that, typically, housing and the cost of living generally are more expensive in cities than in suburban areas.

Another is that living in the suburbs will usually afford you more space than living in the downtown core. While cost and space are usually more favorable in the suburbs, urban centers offer higher job availability, which essentially means that, if you do choose to live in the suburbs, you will likely have to commute. Finally, urban areas often offer more culture than the suburbs, which basically boils down to a lifestyle perk.

Are suburbs more expensive?

Deeper into the COVID-19 pandemic, there has been a shift in favor of the suburbs, meaning that, due to higher demand and competition, the dollar gains in the average home value rose faster in the suburbs. In fact, since July of 2021, home values in the suburbs has risen faster on an annual basis than their urban counterparts.

As of March 2022, the typical suburban home in the US rose in value by nearly $66,500. The typical urban home, on the other hand, gained just over $61,650 in value during that same time period. This suburban outpacing of urban households has not been seen since January 2013, when home values started their recovery after the housing crash.

While urban markets are also seeing incredible growth, and taking into account that markets across the US do differ, the suburbs are seeing a greater demand in most of the nation. For instance, there was a higher dollar-value growth in the last year in the suburbs of most of the 50 biggest US metros, compared to the urban centers. Of the top 50 metros in the US, only three saw higher dollar gains in average value of an urban home compared to a suburban home over the last year.