Millionaires in 2023 choose renting over buying homes

A recent Wall Street Journal report reveals a growing trend among millionaires opting to rent rather than buy homes, despite their financial capability to purchase properties. This shift is particularly notable in urban areas like Manhattan and Jersey City, where rental prices have surged. For instance, a millionaire entrepreneur rents a high-rise apartment in Manhattan for $19,000 monthly, reflecting a broader sentiment that current property values do not align with their perceived worth. Data from the U.S. Census Bureau indicates a significant increase in high-income renters, with a 10.5% rise among those earning $750,000 or more from 2018 to 2022. Additionally, the number of households earning over $150,000 doubled between 2015 and 2020. This trend is not uniform across the country, as some regions, like Houston, have not seen a similar increase in high-income renters, according to local real estate agents. The preference for renting among wealthy individuals is attributed to various factors, including the desire to outsource property maintenance, enjoy walkable neighborhoods, and minimize household chores. This lifestyle choice allows them to focus on other priorities while still enjoying high-end amenities that may be less accessible if they owned a home. Despite the common perception that homeownership is integral to the American Dream, many affluent individuals are reevaluating this notion. Economic analysts suggest that the wealthy can afford to view housing options differently, leading to a notable shift in the traditional views on homeownership.