Although mortgage news throughout the country has focused on the waves of young millennials moving to urban areas, the Urban Land Institute’s Terwilliger Center for Housing’s latest report suggests that the suburbs have actually surpassed cities in growth.   

According to the non-profit’s research, the nation’s suburbs have grown exponentially within the past couple of years due to affordability concerns for the urban housing market. More specifically, the median home values of studied cities were, on average, at least $60,000 more expensive than those in suburban areas. This has caused suburban populations to outpace downtown areas in population growth, diversity, and even younger residents.

As a result of this shift, suburban areas now account for 79 percent of the population, with 91 percent of this growth occurring over the past 15 years. In addition, about 75 percent of people aged 25-34 have moved to these suburban areas. This means many young, first-time homebuyers are entering suburban housing markets.

Stockton Williams, Executive Director of Terwilliger Center, said this trend would only grow stronger as suburban areas continue to play a key role in providing lower cost housing alternatives to people who work in and around cities. “We won’t solve the many economic and social challenges that are bound up in our housing market in the urban core,” he reported, emphasizing the need for suburbs to keep the housing market stable.

Overall, this report demonstrates the continuing growth of suburban areas. People are ready to buy more homes than ever before, and they’re ready to do it in the suburbs.

For more information about the housing market, or to learn more about home financing, contact one of our mortgage specialists today and download The Ultimate Guide To Homebuying and Financing.