Let’s get right to it: the cost of owning has exploded. Taxes, insurance, assessments, interest—every line item got heavier. That’s why renting isn’t just for people saving up anymore. It’s a strategy. And the wealthiest buyers in America are using it.
A recent national study shows the number of millionaire renters jumped to roughly 13,700 households in 2023—more than triple what it was in 2019. Meanwhile, the number of millionaire homeowners grew, but nowhere near the same pace. Put simply: people who can buy are choosing not to—at least not right now.
Why wealthy buyers are opting to rent
Flexibility + liquidity. You can move fast, keep capital working elsewhere, and avoid being married to one asset while markets figure themselves out. If you want to pivot—to another neighborhood, city, school zone, or tax jurisdiction—you can do it without a sale clock.
Carrying costs and risk. Ownership isn’t just the purchase price. It’s real estate taxes, insurance (which has spiked in places like Florida and California), common charges/HOA fees, special assessments, maintenance, and the sheer time cost of dealing with it all. If you’re busy, that “time tax” is real.
Time-on-market is longer. Homes have been sitting again. When days on market push above pre-pandemic norms, the appeal of staying liquid goes up. Wealthy households don’t love illiquidity in a choppy environment.
Pandemic migration changed the map. Low-tax Southern cities (Houston, Dallas, Miami, Atlanta) saw big waves of high-income renters during the relocation surge. But in pure volume, the coasts still lead: New York and San Francisco posted the largest millionaire-renter counts, and both more than doubled since 2019.
Where the millionaire renters are clustering
Large coastal metros dominate: New York, San Francisco, Los Angeles, San Jose, Boston, Chicago, Miami, Washington, Bridgeport, and Atlanta sit at the top. Runners-up include Seattle, Austin, Charleston, Dallas, Houston, Phoenix, Philadelphia, Oxnard, Virginia Beach, and Trenton. Translation: this is not a fringe trend—it’s mainstream in every major market that matters.
And yes, most affluent households still own. There were well over 140,000 millionaire homeowners in 2023. But the growth story—the behavior change—is on the rental side.
The NYC reality check (my backyard)
Here’s the honest math I walk clients through:
- That $5M–$8M condo you like isn’t just a mortgage. It’s monthly taxes + common charges (often five figures), potential assessments for capital projects, and the opportunity cost on your down payment.
- A comparable rental at $20k–$35k/month can be cheaper all-in for the next 12–24 months while you:
- Keep cash deployed in the market,
- Wait out inventory to improve,
- Get clarity on rates or tax policy,
- Or simply decide which neighborhood actually fits your life.
Owning still wins when your timeline is long, you’ve found a truly scarce asset, and you’re comfortable with the carry. But renting buys you time—and time is leverage.
If you’re a seller, here’s the adjustment
You’re competing with flexibility. That means your pricing and your marketing need to be airtight. Buyers with means can rent a stunning place tomorrow and revisit the purchase next spring. To pull them off the sidelines, you need:
- Correct positioning (not wishful pricing)
- Flawless presentation (photography, copy, video, floor plans, staging)
- Distribution that actually reaches the whales (not just “we put it online”)
This is where most listings fail. If your agent isn’t driving qualified, motivated traffic and creating urgency, you’re feeding the rental trend.
If you’re a buyer, here’s the framework I use
Ask yourself five quick questions:
- Timeline: Will you keep this home 5+ years?
- Scarcity: Is this property hard to replace (light, views, outdoor space, block, building pedigree)?
- All-in monthly: Do the carry costs plus likely capex still make sense vs a top-tier rental?
- Opportunity cost: Is your down payment better off elsewhere for the next 12–24 months?
- Lifestyle: Does owning this exact home measurably improve your life right now, not in theory?
If you clear those, buy. If not, rent intentionally and keep your powder dry.
Bottom line
Millionaire renters aren’t indecisive; they’re strategic. In a market where costs are up and time-to-sell is longer, flexibility has value. For many high-net-worth households, the smartest play today is to rent the lifestyle and buy the asset when it’s undeniably the right one.
If you want the real math on own vs rent for a specific address—or you’re a seller who needs a plan that actually moves the needle—reach out. I’ll give you the straight answer and a strategy that works in this market, not last year’s.
