Millionaire renters are on the rise, growing at a faster pace than millionaire homeowners, according to a report from RentCafe.
Between 2020 and 2024, the number of millionaire renter households remained small compared to homeowners, but it was growing at a much faster pace, the apartment search platform found after analyzing American Community Survey estimates. Millionaire renters grew 229%, or more than tripled in just five years. That's faster than the 193% jump in millionaire homeowners over the same period.
Preferring to rent marks a shift in housing preferences as affluent Americans have long favored owning, which has been a hallmark of the 'American Dream.'
"For a growing number of millionaires, renting is now a deliberate choice," the report
said. "That's because many prioritize mobility without the commitment of owning a home, as well as the ability to relocate without going through the lengthy process of selling a multi-million-dollar house."
Also, "rather than tying up capital in real estate, many affluent renters prefer to keep their money liquid and invest in a stock market that’s posted strong gains," it said.
Who are the millionaire renters?
Millionaire renters are usually millionaire households due to double high incomes (75%), the report said. Only a quarter are individual millionaires.
They also tend to be younger. Nearly half of millionaire renters (49%) are Millennials, but Gen Z has posted the fastest surge in millionaire renters, the report said. The number of Gen Z millionaire renters increased 46-fold to more than 400 households in 2024 from fewer than a dozen in 2020, it said. However, Gen Z makes up only 2% of all millionaire renters, RentCafe noted.
"This generation was barely entering the workforce in 2020," said Adina Dragos, RentCafe writer and research analyst. "By 2024, the oldest Gen Zers were approaching 30, and many who struck it big early — through the creator economy, crypto or startup equity — were choosing to rent precisely because their wealth isn't tied to a traditional career ladder. With no employer anchoring them to one place, they have little reason to put down roots."
What do millionaire renters do for a living?
Most of these folks are in white-collar, high-earning fields, like chief executives, tech professionals and top financial managers that don't necessarily require them to work in one specific location, RentCafe said.
However, there were some surprises like high-earning professors and operations managers, "a sign that the millionaire renter isn’t always who you’d expect," it said.
Where do millionaire renters live?
Most millionaire renters are still in big cities like New York City, San Francisco and Los Angeles where renting is a practical option, but Texas and Florida are seeing huge growth.
Houston’s millionaire renters grew to 232 in 2024 from 18 in 2020, representing a 1,189% surge, data show. "Granted, 232 households is still a tiny fraction of the Houston metro’s roughly 2.7 million households, but the growth rate far outpaces any other major metro," RentCafe said. Much of the surge is fueled by affluent newcomers, including executives, professional athletes and entertainers.
Lower taxes are also a draw, "The pandemic accelerated the shift as remote work pushed the wealthy to relocate to lower-tax metros like Houston," it said.
Naples and Miami led the jump in millionaire renters in Florida, both registering a more than 950% increase, the report said.
A new destination for millionaire renters is Lake Havasu City, Ariz., which had zero millionaire renter households in 2020 but had 226 in 2024, it said.
"Lake Havasu City’s climb mirrors a larger wave of affluent Californians chasing lower taxes, a more affordable cost of living and an easier-going lifestyle — but without sacrificing access to high-end housing," the report said.
Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
This article originally appeared on USA TODAY: Millionaire renters are growing. Why they're choosing to rent vs buy
