As the cost of homeownership has soared, renting has emerged as a popular and economical option — even for those who can afford to buy.
According to a report from RentCafe, the number of millionaire renters in the United States reached 13,692 in 2023 — more than triple what it was in 2019 — while the growth rate of millionaire homeowners lagged behind. The data excluded vacation and short-term rentals, a RentCafe representative said. (Researchers analyzed data from the Integrated Public Use Microdata Series, a database run by the University of Minnesota, to reach their conclusions.)
“They’re choosing flexibility and liquidity over ownership,” said Glen Stegemann, a broker with The Agency based in Miramar Beach, Fla. “They don’t want to be bothered with the inconveniences of homeownership, which includes paying real estate taxes and insurance, especially in markets like Florida and California, where we’re seeing a lot of natural catastrophes.”
For those with the means, renting can free up cash to invest elsewhere, like in the stock market, where those investments can be sold quickly. Homes are taking longer to sell: The average time on the market surpassed prepandemic levels for the first time in July.
The Covid-19 pandemic, largely overlapping with the years of the study, appears to have played a big role. Low-tax Southern cities, especially Houston, Dallas, Miami and Atlanta, attracted throngs of northerners during the pandemic and saw the most significant upticks in millionaire renters.
In terms of volume, large coastal metros lead. The number of millionaires renting in New York City rose from 2,204 in 2019 to 5,661 in 2023, according to the study. In San Francisco, it went from just 321 millionaire renters to 1,411 during those four years.
Of course, most affluent people still prize homeownership. The number of millionaire homeowners reached 143,320 in 2023 — more than 10 times the amount of millionaire renters.
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