Landlord Newsletter
July 2025
Buyers Priced Out of Owning Their Dream Home in the
Suburbs Have a Solution—They’re Renting Behind the White
Picket Fences Instead
Posted on Realtor.com – June 17, 2025
A growing number of Americans have come to accept that they might not be
able to afford to buy the idyllic suburban home of their dreams anytime
soon—so instead, they are choosing to rent one.
In recent years, the supply of rental properties in suburbs surrounding many
major metros has surged, driven by both new construction and changes in
tenure—meaning that homes once occupied by owners are being rented out
to tenants.
Realtor.com® senior economist Jake Krimmel analyzed data from the
latest American Community Survey between 2018–23 and found that the rise
in suburban rentals could be seen in metros that saw a boom in new
construction, such as Austin, TX, Nashville, TN, and Denver, as well as in
cities with low construction rates, among them Boston, Philadelphia, and
Washington, DC.
Perhaps unsurprisingly, fast-growing metros saw dramatic increases in renter-
occupied homes.
Bastrop County, TX, situated about 30 miles from downtown Austin, saw the
number of rental properties surge by nearly 50% from 2018 to 2023. During
the same period, nearby Williamson County added 46% more for-rent homes,
followed by Hays County with 25% and Travis County with 20%.
Brad Pauly, an Austin broker and the owner of Pauly Presley Realty, tells
Realtor.com that there are currently more renters than buyers in the local
housing market.
"Because of the discrepancy between what it would cost to lease versus to
buy, leasing has become a more attractive option financially," he says.
Multiple factors are behind this shift, according to Pauly, including
elevated mortgage rates in the high-6% range, which are keeping buyers on
the sidelines, as well as the proliferation of rental properties that were bought
for that specific purpose during the COVID-19 pandemic years.
Additionally, Pauly notes that a large number of homeowners in the suburbs
had originally planned to sell, but ultimately opted to rent out their homes in
light of the softening market conditions.
Krimmel confirms that the housing market analysis mirrors what Pauly has
been seeing first-hand in Austin.
"In general, the suburbs have boomed during and after the pandemic, due in
large part to people wanting more space and also because the large
generation of millennials were beginning to settle down and start families," he
explains. "With all this demand for the suburbs, we saw a lot of new-
construction activity there."
Nashville has seen a similar trend, with the number of rentals in Williamson
County increasing 25% in five years. Meanwhile, Rutherford
County and Davidson County saw upticks of 16% and 15%, respectively.
On the East Coast, where the construction pace is considerably slower and
boosts in rentals come entirely through changes in tenure, the suburbs
of Washington, DC, such as Prince George's County and Howard County,
added between 11% and 12% of rental homes—while areas outside Boston,
including Norfolk and Middlesex counties, saw smaller gains in the single
digits.
"In short, demand for suburban living is up, and supply in many markets has
met that demand," notes Krimmel. "But even in metros that didn’t build a lot in
response to this demand, we still see a rise in suburban rentership."
While the majority of new construction is built for owners to live in themselves,
a suburban construction boom also frees up existing homes for investors to
buy and then rent out.
Fueled by higher interest rates that have put homeownership out of reach for
many, built-to-rent construction has been on the rise, especially in the suburbs
in the South and the West.
Roughly 100,000 new build-to-rent properties are being developed across the
U.S. at this time, following a strong year for the industry, which saw a record
39,000 rental single-family homes completed, according to a recent report
from Point2Homes.com citing March data from the real estate research
company Yardi Matrix.
"Between investor activity, build-to-rent, and high interest rates keeping would-
be first-time homebuyers in a holding pattern, rentership has surged in the
suburbs," says Krimmel.
Texas Homebuyers Had More Homes to Choose from in Q1 of 2025
Prices Were Similar to the Previous Year.
April 22, 2025 — Austin
Statewide, the median Texas home sales price of $331,000 was only 0.3% higher in
early 2025 than at the same time last year, but active listings were up 30.7%, according
to the 2025 Q1 Texas Quarterly Housing Report released today by Texas REALTORS®.
The 70,944 sales that closed represented a 1.5% decline. Texas homes stayed on the
market an average of 72 days, which was a one-week increase compared to the same
period last year. Months of inventory (4.8) was up by more than a month.
Greater choice for Texas buyers
Active listings increased in all markets. Houston had the most active listings, with
33,374. That was an increase of 38%, the biggest change in any of the four largest
markets, and in smaller markets was only outpaced by McAllen at 38.8% and San
Angelo at 38.9%.
“Buyers had more opportunities and a little more breathing room to consider their
options in the first months of this year compared to last year,” said Christy Gessler,
Chairman of Texas REALTORS®. “But prices and sales did not shift much in either
direction in most Texas markets.”
Markets differed on sales and prices, but changes were generally minor
Comparing the first quarter this year with last year, the number of closed sales rose in 9
markets and fell in 17. Most increases and decreases were small. Dallas had the most
closed sales.
Median home prices were up in 18 markets and down in 8. Days on the market
increased in 23 markets and decreased in 3.
Home inventory moves into “balanced” category
Months of inventory, which measures how long it would take to sell the homes currently
on the market at the current pace of sales, increased from 3.7 months at the end of the
first quarter last year to 4.8 months at the same time this year. Four to five months of
inventory generally indicates a market balanced between supply and demand,
according to analysts at the Texas Real Estate Research Center. Every market had an
increase in months of inventory or had no change.
“Housing market dynamics can shift quickly,” said Gessler. “Each area is unique, and
Texas REALTORS® are uniquely prepared to adapt to changes as they happen.
REALTORS® have access to the most accurate data and, crucially, they can interpret it
to help buyers and sellers make good decisions and realize their dreams.”
About the Texas Quarterly Housing Report
Data for the Texas Quarterly Housing Report is provided by the Data Relevance Project,
a partnership among local REALTOR® associations and their MLSs, and Texas
REALTORS®, with analysis by the Texas Real Estate Research Center at Texas A&M
University. The report provides quarterly real estate sales data for Texas and 26
metropolitan statistical areas in the state. The Texas Real Estate Year-in-Review
Report in February is released in lieu of the Q4 report. Note that statistical comparisons
to prior Texas Quarterly Housing Reports may not be valid due to external factors such
as MSA boundaries being redrawn by the U.S. Office of Budget and Management.
About Texas REALTORS®
With more than 140,000 members, Texas REALTORS® is a professional membership
organization that represents all aspects of real estate in Texas. We are the advocate for
REALTORS® and private property rights in Texas.
As the retailer continues its expansion in the North Texas, H-E-B is excited to announce
plans to open its first H-E-B store in Denton in Hillwood’s Landmark development.
The Denton H-E-B store will be built on a more than 20-acre site at the northwest corner
of Interstate 35W and Robson Ranch Road. While the purchase of the property is not
yet finalized, construction on the store is expected to begin this spring.
“This is a rapidly growing area, and we are excited to introduce this
new H-E-B store to Denton and surrounding towns. We look forward
to meeting our new neighbors and sharing more details soon,” said
Mabrie Jackson, Managing Director of Public Affairs for H-E-B and Central
Market.
Proudly serving communities across the state since 1905, the Denton store will build on
the company’s longstanding presence in the area and reinforces its commitment to
serve more customers in this dynamic and growing part of the state.
New Bill Cracks Down on Texas Squatters After First Taking Swing at Renters
Dallas Observer Article
Housing advocates were shocked at the sweeping changes to the eviction process proposed in the bill's early stage
The testimony of North Texans before a Texas Senate committee last
summer sounded the alarm on the issue of squatting. One year later, the
passage of a new bill could help landlords looking to oust squatters, but it
nearly took a chunk out of tenants' rights with it.
Squatting occurs when uninvited guests occupy a property without the
owner’s consent or knowledge. The practice has historically been tricky to
maneuver legally because it wasn’t explicitly defined in state law, and it's
difficult to truly know just how pervasive the problem is.
As of last June, David Howard, executive director of the National Rental
Home Council, believed there could be as many as 500 ongoing squatting
cases throughout Dallas-Fort Worth alone. Still, that number is hard to
verify because police departments tend not to classify cases using the
“squatting” terminology. Charges of criminal trespass or burglary could be
used in instances of a person living illegally in a home, a spokesperson for
the Dallas Police Department told the Observer at the time.
It was the testimony of Texans like Mesquite resident Terri Boyette, whose
home was turned into a “drug den” when a man moved in while she was
out of town, that left state senators feeling like the handling of the issue to
this point has been “a bunch of crap.”
“I invited the public from all over the state to tell their horror squatter stories
and proposed solutions. This should not be happening in Texas,” said state
Sen. Paul Bettencourt, who chaired the hearing. “We are going to make it
easy for homeowners and business owners to ‘Come and Take it Back’
from squatters."
Advocates say Senate Bill 38, which Gov. Greg Abbott signed into law on
June 20, will make it easier for landlords to evict illegal occupants in bona
fide squatting cases by allowing for summary disposition — a legal
procedure in which a judge can rule on a case on an expedited timeline in
which a full trial is not required because the facts of the case are not in
dispute.
But as the legislative session wound to a close, SB 38 had the potential to
completely rewrite the eviction process, affecting millions of Texans by
effectively lumping anyone who pays a monthly rent to a landlord into the
same legislative category as squatters occupying a property illegally.
Brennan Griffin, a housing legislation advocate and senior deputy director
for Texas Appleseed, told the Observer that the bill was nearly a “poison
pill” for renters and renter advocacy efforts.
Notes from a few of our residents and other landlords!
"Angela is amazing! Give her a call if you need to talk about renting your property. Great company."
-Reece
"I leased a home for 2 years that was serviced through this property management group. Overall, they were professional, timely, and had user friendly applications for payment and maintenance requests. We did encounter a misunderstanding in regards to the refund of our security deposit, however 3G reviewed our dispute and resolved our claims within a week or so.
I will definitely consider using 3G to manage my rental properties as I begin to acquire them."
-Sawyer
" Sarah and her operations team made it an easy and smooth transition as a first time landlord. From listing, to finding a tenant, they made me feel at ease. I would highly recommend 3G for leasing and Property Management!"
-Jake
"Rented through this company for 2 years. Maintenance always came out in a timely fashion. When problems arose management always found a fair solution.. & let’s face it these days that’s hard to find. Would definitely recommend.'
-Alondra
National Hot Dog Day is a fun, unofficial food holiday celebrated annually on the third Wednesday in July, set by the National Hot Dog and Sausage Council. In 2025, it falls on Wednesday, July 16
Quick facts:
The holiday was first established in the early 1990s, tied to hot dog lunches on Capitol Hill.
Americans chow down about 7 billion hot dogs from Memorial Day to Labor Day—and 150 million alone on the 4th of July.
On average, a person eats around 70 hot dogs annually
Click here for Recipes That Are Easy, Delicious, and Totally Addictive - The Hungry Gourmet
