Times have changed, and so has the home value of many suburban areas. Now, people are choosing to settle in more urban and fast-paced areas.
Cody Fuller of Zillow writes the rift between home values per-square-foot in urban and suburban areas has extensively opened over the past twenty years. As city living becomes more appealing, the stable suburban home has lost some of its shine. Suburban homes used to be worth a lot more than urban areas because of its safety and traditional setting, but now large metro markets are in trend.
As of the end of 2015, the typical U.S. home in an urban area is worth $269,036, almost 2 percent more than the average suburban home value of $263,987.
Nationally, average urban rents are lower than rents in suburban areas, though the difference is not as pronounced as the difference in home values – currently, rents in suburban areas average $1,695 per month, compared to $1,640 in urban areas.