Key Takeaways
- Millionaire renter households grew 229% from 2020 to 2024, outpacing growth among millionaire homeowners, according to a new report from RentCafe.
- Wealthy renters are choosing flexibility and investment opportunities over tying up money in a home.
- Dual-income couples account for 75% of millionaire renter households.
More millionaires are renting, despite being able to afford homeownership. This group of wealthy renters is choosing a different path on purpose.
According to a recent report from apartment search website RentCafe, millionaire renters are growing at a faster rate than millionaire homeowners. The report qualified individuals from households that have a total annual household income of $1 million or more as millionaires.
From 2020 to 2024, the number of millionaire households renting their homes surged 229%, more than tripling in five years, compared with a 193% increase among homeowners in that same time period, according to RentCafe’s analysis of American Community Survey estimates.
Choosing to rent contradicts a long tradition of treating homeownership as a defining symbol of the American Dream, especially for affluent Americans.
“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.”
The report also pointed out that many wealthy renters would rather keep their money accessible and pursue returns in a strong stock market rather than lock their funds into a home.
Characteristics of millionaire renters
Most millionaires reach that status with two incomes. According to the report, couples with high earnings account for 75% of these households, while individuals make up the remaining quarter.
RentCafe found that millennials represent the largest share of millionaire renters at 49%. However, Gen Z is the fastest-growing group, with its count rising 46-fold from fewer than a dozen households renting in 2020 to more than 400 in 2024. The report revealed that despite that jump, Gen Z still comprises just 2% of millionaire renter households.
Gen Z “was barely entering the workforce in 2020,” Adina Dragos, RentCafe writer and research analyst, said in an interview with USA Today. She noted that “by 2024, the oldest Gen Zers were approaching 30.”
“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,” she said. “With no employer anchoring them to one place, they have little reason to put down roots.”
Millionaire renters typically work white-collar jobs and live in major cities
According to RentCafe, millionaire renters typically hold lucrative white-collar jobs as chief executives, technology professionals and senior financial managers. These roles offer flexibility about where they live and work.
The group also includes less obvious high earners, such as professors and operations managers. It’s “a sign that the millionaire renter isn’t always who you’d expect,” per the report.
New York, San Francisco and Los Angeles remain major hubs for millionaire renters, but their numbers are climbing rapidly in Texas and Florida.
Houston recorded the fastest growth of any major metro, with millionaire renter households rising from 18 in 2020 to 232 in 2024, a 1,189% increase.
“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 noted.
Key Takeaways
- Millionaire renter households grew 229% from 2020 to 2024, outpacing growth among millionaire homeowners, according to a new report from RentCafe.
- Wealthy renters are choosing flexibility and investment opportunities over tying up money in a home.
- Dual-income couples account for 75% of millionaire renter households.
More millionaires are renting, despite being able to afford homeownership. This group of wealthy renters is choosing a different path on purpose.
According to a recent report from apartment search website RentCafe, millionaire renters are growing at a faster rate than millionaire homeowners. The report qualified individuals from households that have a total annual household income of $1 million or more as millionaires.
From 2020 to 2024, the number of millionaire households renting their homes surged 229%, more than tripling in five years, compared with a 193% increase among homeowners in that same time period, according to RentCafe’s analysis of American Community Survey estimates.