The rise of millionaire renters across the US
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The number of millionaires renting homes in the United States has surged, challenging long-held assumptions about wealth and homeownership. Once considered a stepping stone or second-best option, renting is now a deliberate strategy for thousands of high-net-worth individuals who are prioritizing mobility, liquidity and lifestyle over property deeds.
New data from RentCafe shows that in 2023, the US had 13,692 renters with a net worth exceeding $1 million, more than triple the number in 2019. While the number of millionaire homeowners also rose during this period, their growth rate was slower. This reversal in behavior comes at a time when the financial and emotional calculus of homeownership has shifted, particularly in high-cost and disaster-prone markets.
Trends behind the shift
A closer look at the RentCafe analysis reveals that this uptick in millionaire renters is not incidental. The numbers, based on the Integrated Public Use Microdata Series maintained by the University of Minnesota, exclude short-term or vacation rentals, focusing solely on primary residences. That makes the trend more revealing: affluent individuals are actively choosing to rent the homes they live in.
Their reasons are varied but often converge around flexibility. “They’re choosing liquidity over equity,” said Glen Stegemann, a broker with The Agency in Miramar Beach, Florida. “They don’t want to be tied down by insurance premiums, property taxes or maintenance, especially in volatile housing markets.” For ultra-wealthy renters, this can also mean leveraging capital elsewhere particularly in stocks, private equity or business ventures without being encumbered by the cost of a mortgage or upkeep.
Another factor is the rising cost of homeownership itself. Prices have surged since the pandemic, while interest rates remain elevated. Even for cash buyers, the value proposition of owning is less compelling when rents in luxury buildings often include amenities, security and maintenance all without a long-term commitment.
Regional hotspots and unexpected cities
While cities like New York and San Francisco continue to attract affluent renters, the most dramatic increases are occurring in southern and secondary metro areas. Houston, for example, saw a 25-fold rise in millionaire renters between 2019 and 2023. Miami, Austin, and Scottsdale also reported significant jumps, underscoring a broader shift toward sunbelt cities that offer tax advantages and new high-end rental developments.
California’s appeal among affluent renters remains strong, despite the high cost of living. Natural disasters and insurance volatility, particularly in wildfire-prone areas, are pushing millionaires to sidestep ownership. In San Diego and Sacramento, luxury rental towers with concierge services are drawing interest from professionals and retirees alike.
Renting among the wealthy is also becoming more common in resort-like communities where ownership once conferred status. From Aspen to the Florida Panhandle, developers are introducing high-end rentals with amenities such as private chefs, spa access and curated events, features that used to be reserved for five-star hotels or gated developments.
Generational and market dynamics
Demographics play a key role in explaining the rise of millionaire renters. Millennials, now entering their peak earning years, have become the largest group of homebuyers but also dominate the ranks of millionaire renters. For many, renting is not a fallback but a preference. Having grown up during the 2008 housing crash, this generation often views real estate with more caution and considers diversification of assets as a core financial principle.
Moreover, the digitization of wealth has shifted priorities. Entrepreneurs and tech workers who generate wealth through startups or digital assets often value flexibility. Remote work has expanded the radius of viable living locations, reducing the need to “settle down” in traditional job hubs. Renting offers them the chance to live in high-end spaces in dynamic neighborhoods without locking up capital in property.
Inventory shortages are another factor. In some luxury markets, there are simply fewer properties available for purchase than there are renters willing to pay top dollar. This scarcity is pushing even well-qualified buyers to stay on the sidelines.
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