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Exurban Exodus

Housing has become so unaffordable in the U.S. that a major homebuying demographic, Millennials, are opting to buy in more affordable exurban areas instead of pricey urban and suburban markets.
March 28, 2019
2 min read

Housing has become so unaffordable, especially for Millennials, that they are increasingly opting to buy in more affordable exurban areas instead of pricey urban and suburban markets.

The trend is helping a revival of the exurbs for the first time in a decade, according to Laura Kusisto of The Wall Street Journal, writing that these homes are located more than 16 miles from central business districts on average, the farthest since 2004, based on Fannie Mae loan data. More home sales and building activity are happening in exurban areas, despite the nation's overall housing cooldown, Business Insider quotes Kusisto, "Rising mortgage rates and home prices, especially in urban centers, are once again motivating buyers to drive until they can afford a home, including in Dallas, Las Vegas, Atlanta, and the San Francisco Bay Area. Low gas prices help as well."

Living in what's known as a commuter town is worth the savings in a housing market that hit an all-time high in prices in 2018, according to the National Association of Realtors data — even if it comes at the cost of time.

"If you move into town, you're going to spend your entire salary paying for a house," Josh Bush, a 29-year-old exurb resident whose 50-minute commute can turn into two hours if he hits traffic, told Kusisto.

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