Looking to get away from the hustle and bustle of the big city? If so, you may be searching for that perfect suburb lined good schools, green spaces and two-car garages — but not so fast. With today’s exorbitant cost of living, some of those suburbs may come with a heftier price tag in 2025.
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To find out, let’s first ask an important question: What are some factors that can contribute to the rising cost of suburban living? The simple answer is supply and demand. Proximity to major metropolitan areas is primarily what creates an increased housing demand which, in turn, drives up home prices.
But, according to DJ Olo, host at The Foreclosure Fix Podcast, the rising cost of living does not simply come from housing prices, but is, in fact, “death by one thousand paper cuts.” As demand (and, therefore, growth) rises in a particular location, so too does the price of groceries, gas, property tax, restaurant dining and recreational activities. In other words, it’s a cascade.
However, special projects editor at NationalBusinessCapital.com, Chris, Motola, cautions that “we may be looking at a very different real estate market in 2025 as a weakening labor market cuts into housing demand […] so it’s less a question of exponential increases than which markets will be able to retain their value or even increase a few percentage points despite disinflationary trends.”
All factors considered, here are the seven suburbs where experts predict the cost of living could skyrocket in 2025:
1. Worcester, Massachusetts
According to Motola, the Boston suburbs are under tremendous pressure. Close to elite universities and a slew of cultural venues, “Boston is one of the most expensive rental markets in the nation.” This is because there hasn’t been the construction boom seen in other places like South Florida. And Worcester, in particular, has become an increasingly attractive suburb for laying down roots.
Additionally, the Boston Globe noted that “for a decade now, Worcester’s population has been on the rise. The city of about 205,000 grew faster than any other large city in New England in the 2010’s, its 14% growth rate doubling that of Providence. And that growth has continued since COVID, even as Boston lost nearly 25,000 people.”
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2. Raleigh Hills, Oregon
With a population of 6,737, Motola stated that Raleigh Hills is another location where the cost of living could jump in 2025. Located in close proximity to Portland and increasingly appealing to those wanting easy access to nature and vibrant culture, Raleigh Hills has grown in population by 5% from 2010 to 2020. Boasting excellent nightlife, restaurants, coffee shops, parks, and public schools, Raleigh Hills offers an urban suburban feel that continues to attract young professionals and retirees alike.
3. New Haven, Connecticut
On the topic of constrained housing supply, there is arguably no greater market demand for suburbs than those near New York City. If Motola is right, the cost of living in New Haven will only continue to increase. A coastal location along the Long Island Sound, New Haven is the home of Yale University and a popular area for investors due to its vibrant community life, excellent healthcare facilities, dining options and, of course, proximity to Manhattan. Broadway shows are a mere train ride away. Graduate students and young professionals working in aerospace, medical manufacturing and biotech continue to flock to New Haven.
4. Frisco, Texas
Owner and founder at Sentry Real Estate, Chad Breeden, projected that the cost of living in this Dallas suburb will increase in 2025. “Frisco’s proximity to major tech hubs and corporate relocations is driving up demand, which is projected to significantly increase housing costs,” stated Breeden. In fact, Toyota, CBRE and McKesson have all recently moved their headquarters to Dallas. “With new investments and infrastructure projects, Frisco is becoming one of the most desirable suburban areas in Texas,” stated Breeden, who is personally investing in this area, as well.
5. Cary, North Carolina
A thriving arts scene, strong economy, safe neighborhoods, urban forests, and overall high quality of life make this Raleigh suburb a magnet for professionals and families, explained Breeden. Money Magazine even named Cary the hottest town in the East and one of six hottest towns in America. Located just 12 miles from Raleigh’s plentiful museums and hiking trails, “Cary’s growing population and development will likely push up housing prices and overall cost of living in 2025,” added Breeden.
6. Murfreesboro, Tennessee
According to Breeden, Murfreesboro’s “proximity to Nashville and appeal as a commuter town will continue to fuel demand.” While housing is currently 19% cheaper than the national average, Murfreesboro’s desirable job market is fueling rapid growth and a subsequent housing demand which will create a spike in costs. Growing industries in Murfreesboro currently include construction, healthcare, manufacturing, technology, supply chain, banking, insurance and real estate. And who wouldn’t want to be one car ride away from the South’s lively country music scene?
7. Alpharetta, Georgia
Atlanta has been one of the fastest growing cities in the last few years. And, as a result, the surrounding areas are booming, explained Ojolo. Strategically located within roughly 30 minutes from downtown Atlanta and 45 minutes to one of the busiest airports in the country, Alpharetta is known for its top-rated schools, flourishing music scene, high-end shopping, diverse culture and family friendly atmosphere. Thanks in part to private sector investment and job growth, “over the past few decades, Alpharetta has grown dramatically from its rural roots to become a bustling residential and commercial ‘destination of choice,'” reads the city of Alpharetta’s government website. It shows no signs of slowing down.
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This article originally appeared on GOBankingRates.com: 7 Suburbs Where the Cost of Living Could Skyrocket in 2025
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