as Home ownership costs have risenhe Renting has emerged as a popular option and economicaleven those who can afford it.
According to a report from RentCafe (American real estate platform), Number of households Tenants with income of $1 million or more In America it arrived 13,692 people in 2023has more than tripled since 2019, but the rate of increase for homeowners with incomes of $1 million or more remains lower than that. Data does not include vacations and short-term rentalsAccording to a Rent Cafe representative. The researchers reached their conclusion by analyzing data from the Integrated Public Use Microdata Series, a database maintained by the University of Minnesota.
“They prefer flexibility and liquidity over ownership.”says Glenn Stegeman, a real estate agent with The Agency, based in Miramar Beach, Florida. “They don’t want to worry about the hassles of homeownership, like paying property taxes and insurance, especially in markets like Florida and California, where natural disasters are common.”
For those with resources, Renting frees up cash to invest in other areas.Like the stock market, investments can be sold quickly. Selling a home takes time: Average time on market exceeded pre-pandemic levels for the first time in July.
The coronavirus disease (COVID-19) pandemic occurred around the same time as the year the study was conducted, and appears to have had a major impact. Southern cities with low taxesespecially Houston, Dallas, Miami, Atlanta, Northerners gathered during the pandemic The biggest increase was among renters with annual incomes of $1 million or more.
In terms of volume, Coastal metropolitan areas lead the way. Number of households with incomes of $1 million or more renting in New York City Increase from 2,204 people in 2019 to 5,661 people in 2023according to research. In San Francisco, the number of renters with incomes of $1 million or more increased from just 321 to 1,411 over the past four years.
of course, The very wealthy still value home ownership. The number of owners with income of at least $1 million reached 143,320 in 2023. 10 times more than the number of renters with the same income.
According to RentCafe’s research, U.S. metropolitan areas have the most renter households with incomes of $1 million or more. The rankings are calculated based on the number of households with tenants earning more than $1 million.
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