Millionaires flock to rentals, signaling a major shift in American wealthy lifestyle attitudes

By Julia Echikson (The New York Times)

Compiled by TechFlow

According to a recent study, the number of millionaire renters in New York City will rise from 2,204 in 2019 to 5,661 in 2023. Karsten Moran contributed to The New York Times.

As home-buying costs surge, renting is becoming an increasingly popular and economical choice—even for those who can afford to buy.

According to a report by RentCafe, the number of millionaire renters in the U.S. reached 13,692 in 2023, more than triple the 2019 figure, while growth among millionaire homeowners lagged behind. A representative from RentCafe said the data excluded vacation and short-term rentals (researchers analyzed data from the Integrated Public Use Microdata Series database operated by the University of Minnesota to reach their conclusions).

"They value flexibility and liquidity over ownership," said Glen Stegemann, a real estate agent at The Agency in Miramar Beach, Florida. "They don’t want to be burdened with the hassles of homeownership like property taxes and insurance, especially in areas prone to natural disasters such as Florida and California."

For financially secure individuals, renting frees up capital for other investments, such as the stock market, which offer quicker liquidity. Meanwhile, home sales are taking longer: the average time homes spend on the market first exceeded pre-pandemic levels in July this year.

The pandemic appears to have played a significant role in this trend. Much of the study period overlaps with the pandemic, during which low-tax southern cities—particularly Houston, Dallas, Miami, and Atlanta—attracted large numbers of residents from northern states and saw notable increases in millionaire renters.

Of course, most wealthy individuals still value homeownership. In 2023, the number of millionaire homeowners reached 143,320, more than ten times the number of millionaire renters.

Where Millionaire Renters Live

RentCafe's research identifies the metropolitan areas in the United States with the highest number of millionaire renter households.

This chart shows the U.S. metropolitan areas with the most millionaire renter households.

Source: RentCafe • The New York Times