Money

Moving To The Suburbs: Which Are The Cheapest City Suburbs?

Data & Guides Money Which Are The Cheapest City Suburbs?

Over the previous year, 22% of US adults either moved or know someone that moved home [1], with many looking to move away from the bustle of city metros to more open suburbs.

Additionally, various reports suggest that 91% of suburban counties in the US saw more people moving into them than out during 2020 and early 2021, with 84% of movers remaining in their metro area but towards more “suburban” settings.

But which are the cheapest suburban cities for those looking to escape the inner metro area?

We’ve analyzed 25 of the largest cities in the nation, comparing the average monthly rental costs and home prices against their neighboring ‘suburban’ cities and towns, with a population of over 10,000 and under 250,000, and up to 25 miles from the major city.

Key Findings

• The average price of a home in a major city cost $505,750, more than 8x the median household income ($62,843)
• In the suburbs, the average property costs $505,340, more than 8x the median household income
• San Jose has the most expensive average suburban property prices ($1,597,981), while El Paso has the cheapest ($161,619)
• The average property rental in a major city costs $2,149 per month, 41% of the US median monthly household income
• Suburban rentals cost $2,107 per month, a difference of $42 per month and an average of about 40% of the US median monthly household income

City & Suburb Home Prices

To provide an insight into where and what price people might be looking to pay should they move from one of the top 25 most populated cities in the nation, we’ve analyzed the Zillow house price data into the average cost of one, two, three, four, and five+ bedroom homes in major cities, the average suburban costs and the cheapest suburb*.

*Suburbs in the study were classified as population areas located within an easily commutable 25 miles of a major city, with a population of between 10,000 and 250,000. 

Average Home Prices

Analyzing Zillow’s data we found that the average cost of a home in a major city ($505,750) and the suburbs ($505,340) nearby are almost identical, representing more than eight times the nation’s median annual household income. 

However, as our analysis also revealed, in 12 of the major cities analyzed the ‘suburbs’ are cheaper than the major city, with 13 of the 25 cities showing the nearby towns and cities are more expensive than the major city.

Overall, those living in Washington DC can find the best value outside of the city limits, with the average property costing an average of $330,000 less in the nearby suburbs. The suburbs of San Francisco are also cheaper than the major city, with the average home costing $292,511 less than within the city limits.

The average home in the suburbs of major cities is just $409 less, with each costing eight times the median household income ($62,843).

However, when we opened up the data further and investigated the average cost of one, two, three, four, and five or more bedroom homes in each of the cities, we found far more variance in the figures and national averages.

Average One Bedroom Prices

Analyzing one-bedroom homes across the most populated 25 major cities, we found that on average a one-bedroom home will cost $1,495 more to buy in the city, with the overall cost of a home in a major city and the suburbs is 4.8 times the national median household income.

Our analysis found that those in Boston can find the best value in suburbs, saving $249,993 when buying a home outside of Boston itself. This is followed by San Francisco, where a suburban one-bedroom costs $193,246 less than within the city. 

At the other end of the scale, our analysis found that a one-bedroom in Phoenix costs (on average) $486,075 more in the suburban towns and cities than in the city itself. While one bedroom in Phoenix costs $191,554, the average suburban cost is $677,629.

Average Two Bedroom Prices

The average two-bedroom city home costs $21,363 more than the average suburban two-bedroom. The average cost in a major city being $382,955, while in a suburban town or city that shrinks slightly to $361,592.

Our analysis found that those in San Francisco could expect to save $300,500 by looking towards the nearby suburbs. However, even these cheaper prices are 9.2 times the annual median household income in San Francisco ($112,449).

While 12 of the 25 major cities showed it was cheaper in the suburbs, 13 have cheaper prices within the city limits. A two-bedroom in San Jose city costs $781,815 (7.1 times the city’s median household income), while in the suburbs the average cost of a two-bedroom is $1,130,025 (10.3 times the median household income).

Average Three Bedroom Prices

Our analysis found that the average suburban three-bedroom home costs $29,092 more than in the major city - $483,739 compared to $454,648. The average suburban three-bedroom home near a major city costs 7.7 times the median household, compared to the inner city average of 7.2 times.

San Francisco - despite being one of the most expensive cities - has the largest difference between the inner-city and suburban average. The suburban three-bedroom home costs $245,103 less than those in the inner city.

Washington DC has the second biggest difference between city and suburban averages, the average suburban home costing $222,792 less. 

San Jose meanwhile sees the opposite of San Francisco and Washington DC, with the average three-bedroom home $489,214 more in the suburbs than in the city.

Average Four Bedroom Prices

Just 10 of the 25 cities analyzed have cheaper suburban four-bedroom homes, with the average cost of a suburban four-bedroom near one of the 25 cities analyzed being $614,579. In comparison, the average cost of a four-bedroom in the major cities was found to be $578,550, a difference of $36,029.

While those in San Jose looking at the suburbs for a four-bedroom home could face paying $711,699 more than in the city, those in Washington DC could save $307,768 by looking a little further afield.

The cities with the cheapest suburbs against local median annual household income are El Paso (4.0x), Oklahoma (4.5x), and Austin (5.7x). While a move to a suburban town or city near Austin or El Paso can save you money ($177,046 and $15,914 respectively), in Oklahoma a move away from the city adds an average of $5,781 to the price.

Average Five (Or More) Bedroom Prices

The average five (or more) bedroom home in the 25 major cities analyzed costs $811,224, the most expensive of which is found in San Francisco ($2,593,958). In comparison, the average suburban 5+ bedroom home in the suburbs of these cities costs $766,915, an average difference of $44,309.

Washington DC has the largest difference between city and suburbs, with the average suburban 5+ bedroom home costing $707,709 less than in the city limits, and savings of nearly double of what can be saved in Dallas ($467,566).

Within Dallas’ city limits the average cost of a five (or more) bedroom home is $937,921, and 17.8 times the local median annual household income (the third-highest local income to price difference). Only Los Angeles (28.7x) and San Francisco (23.1x) have wider gaps between median household income and the cost of a five (or more) bedroom home within the city.

City & Suburb Rents

For many, rentals are the first (and in some cases) only way people can find a place of their own, especially in major cities where one-bedroom homes can be as much as nine times the median household income.

To understand more about rental costs in 25 of the most populated cities in the US, we analyzed Office of Policy Development and Research (PD&R) data to reveal the average rental costs of one to four (or more) bedroom homes in the major cities, and their nearby suburban city and towns.

Average Rental Cost In Each City

On average a major city rental will cost the average American $2,149 per month, with a move to a suburban city or town dropping the average monthly outlay to $2,107, a difference of $42 per month and 0.8% of the median household monthly income ($5,237).

This might not sound like a lot but as the chart below shows, the variation in the average costs can change city to city, with 20 of the 25 areas analyzed showing the suburbs to be at least an average of $200 cheaper per month.

On average rentals in San Jos’s suburbs are $565 cheaper per month than in the inner city, with the monthly cost of a rental 51.0% of the median household (monthly) income but just 44.8% as an average in the suburban towns and cities.

San Diego ($371 per month) and Boston ($286) have the second and third biggest differences between average city and suburban rents per month, with those in San Diego seeing an 11.1% reduction when looking to rent outside the city.

To help reveal the costs of rentals in the cities analyzed and their suburban towns, we’ve further investigated the average cost of one, two, three, and four or more bedroom homes in each of the cites:

Average One Bedroom Rental

San Jose has the biggest difference between city and suburban rent prices, the average inner-city one bedroom costing $572 more than in the suburbs, a city home costing the equivalent of 39.6% of the monthly median household income in the city.

On average, a one-bedroom in the cities analyzed costs $1,562 per month, with those in suburbs costing an average of $1,499 - a difference of $63 per month. 

Our analysis found the suburbs of El Paso, Oklahoma, and Charlotte cost the least when compared to local median household incomes. Those in El Paso would pay just 18.9% of their monthly income on an average one-bedroom home in a suburban town or city, while those in Oklahoma would pay 20.9%, and Charlotte 21.7%.

Average Two Bedroom Rental

On average two-bedroom homes in the cities analyzed cost $2,056 per month, with a two-bedroom in the suburban towns and cities analyzed costing $1,982 - a difference of $74 per month.

The best value for looking at the suburbs over the city itself are found in San Jose, San Diego, and New York, where residents could save as much as $666 (San Jose).

For those looking to spend the least share of their monthly salary, the best deals can be found in El Paso, where the average suburban two-bedroom rental costs just 26.7% of the local monthly median household income ($3,964).

Average Three Bedroom Rental

The city with the biggest difference between city cost and the average suburban cost is San Diego, where residents that look a little further out can find three-bedroom homes for $520 less per month ($3,322).

On average three-bedroom in the 25 cities analyzed cost an average of $2,404 per month, 45.9% of the national monthly median household income. While the suburban towns and cities near the major cities cost an average of $2,333 - a difference of $71 per month.

El Paso has the cheapest suburbs of cities analyzed, the average cost of a three-bedroom rental near the city costing $1,270 per month, 32.0% of the median monthly household income. The most expensive being found in San Jose ($4,545), though it is still $517 cheaper than the city cost.

Average Four (Or More) Bedroom Rental

The average four-bedroom (or more) rental across the area analyzed is (on average) $41 per month more in the suburbs than in the major city. While the average city four-bedroom rental costs $2,572 per month, in the suburban towns and cities analyzed the cost was $2,614.

That said, in Boston, a move to the suburbs can save $669, and spend just 52.3% of the median monthly income. San Jose ($507) and El Paso ($236) have the second and third biggest savings when moving to the suburbs.

Methodology & Sources

Methodology:

House price data was collated using Zillow data covering the first three months of 2021. ‘Suburb cities’ were plotted within a radius of 25 miles from the major city and analyzed based on a population cap of greater than 10,000 and below 250,000. Where some ‘suburbs’ lacked house price data, we excluded results to ensure average figures were not impacted.

Rental data was sourced from huduser.gov where we matched zipcodes against each city located during the house price search to produce and average per city. Where rental data was unavailable or zip codes did not match, the suburb was omitted from the rental search.

The major cities were chosen based on being the most populated in the US.

Percentages and times values were rounded to one decimal place (xx.x), to better explain and show variance between values.

Latest [2] median income for each city major city analyzed:

Sources:

• https://www.zillow.com/research/data/
• https://www.census.gov/data/tables/time-series/demo/popest/2010s-total-cities-and-towns.html
• https://www.huduser.gov/portal/datasets/fmr.html#2021
• https://www.bls.gov/news.release/pdf/wkyeng.pdf
• https://www.census.gov/quickfacts/fact/table/