A growing number of millionaires across the United States are now choosing to become renters instead of purchasing a home, according to a study.
The number of millionaire renters across the country nearly tripled from 2020 to 2022, with more high-earning individuals choosing to rent a home and funnel their funds into other investments instead of buying a house, per Axios, citing data provided by RentCafe.
"Even though they're still a small group, the increasing number of millionaire renters indicates a shift in how well-off people approach lifestyle and investment decisions nowadays," RentCafe analyst Veronica Grecu told the outlet.
"By renting - especially in top-notch neighborhoods - they can stay nimble, ready to move or shift their investments as the market changes," she added.
The number of millionaire renters is expected to continue growing, especially in cities with high costs of living.
Where Are Millionaires Renting Most?
Among all metro areas in the country, New York ranks first as the place with the most millionaire renter households. According to the data, the state has 5,600 renter households with an annual income of at least $1 million.
Following New York is San Francisco, with 1,600 millionaire renters; Los Angeles, with 1,100; Miami, 651; San Jose, California, 600; Oxnard, California, 476; Boston, 468; Houston, 424; Phoenix, 333; and Jacksonville, Florida, 320.
Other metro areas included on the list are Dallas-Forth Worth; Gainesville and Tampa, Florida; Seattle; Washington D.C.; Albany and Buffalo, New York; Austin, Texas; Bridgeport, Connecticut; Denver; Barnstable Town and Worcester, Massachusetts; Winston, North Carolina; and Santa Maria, California.
Apart from the U.S., metro areas in other countries such as Dubai and London are also seeing a rising number of millionaire renters. In London, specifically, multi-millionaires and billionaires spent around $18.9 million to rent high-end homes in the first half of 2023, according to the Robb Report, citing data from Beauchamp Estates.
Jeremy Gee, managing director at Beauchamp Estates, told the outlet that domestic issues such as interest rates and taxation are playing a significant role in the increasing number of millionaire renter households.
As a result, rental prices in London rose by 8.8% annually and are now 30% above their levels before the COVID-19 pandemic.
