Suburban home prices within 90 minutes of major cities are outpacing urban cores for the first time in decades, as remote and hybrid work arrangements permanently alter where Americans choose to live.

New data from the National Association of Realtors shows that home values in exurban areas rose 11.3% year-over-year, compared to just 4.1% in urban cores.

The shift is being driven by workers who no longer need to commute daily but still want periodic access to city offices. Real estate agents report a surge in demand for homes with dedicated office space, larger lots, and proximity to suburban amenities.

Builders are responding with mixed-use developments in suburban areas that combine residential, retail, and coworking spaces. Several major developers have announced plans for walkable suburban town centers designed for remote workers.

The trend has implications for urban tax bases, public transit funding, and commercial real estate. Some city governments are exploring tax incentives to retain residents, while suburbs are investing in infrastructure to accommodate growth.