**Now, For Something Completely Different—Millionaire Renters**
*Adina Dragos*
The narrative around the multifamily housing market traditionally divides renters into two main categories:
– **Renters by need**, who lease out of financial necessity
– **Renters by choice**, who prefer renting due to lifestyle reasons
According to a recent RentCafe report, a new and expanding group within the renter-by-choice camp is made up of millionaires. The report highlights a surprising trend: since 2019, the number of millionaire renters in the U.S. has tripled, growing from 4,500 to 13,700 by 2023. This rate of growth has even outpaced that of millionaire homeowners.
### Why Are Millionaires Choosing to Rent?
“The rise of remote work, high home prices, and steep interest rates have made renting more appealing—even for millionaires,” said Adina Dragos, the report’s author, in an interview with Connect CRE. “Renting offers this demographic flexibility, liquidity, and lifestyle benefits.”
Dragos explained that renting can free up capital for high-income earners, allowing them to invest in stocks, startups, or other ventures, rather than locking money into property. It also guards against the volatility of the housing market and unpredictable mortgage rates.
Another major draw? Flexibility. “It supports easy moves when jobs or lifestyles change,” she added. “Renting lets wealthy individuals explore different neighborhoods without long-term commitments before deciding whether to buy.”
### Where Are They Renting?
While Southern metros are seeing the fastest growth in millionaire renters, major gateway cities continue to attract this affluent segment.
According to the report, millionaire renters are selecting two primary housing options:
– **Large multifamily buildings (50+ units):** About 40% of millionaire renters opt for luxury apartment buildings, attracted by upscale amenities, desirable urban locations, concierge services, and enhanced security.
– **Detached single-family homes:** Nearly 29% prefer the privacy, space, and suburban comfort of standalone homes.
“Both trends suggest these renters prioritize comfort, flexibility, and convenience,” Dragos noted. “They want the freedom of renting with the perks of high-end living.”
### Redefining the Luxury Rental Market
Dragos sees the rise in millionaire renters as a reflection of a broader trend: Americans earning $150,000 or more are increasingly postponing homeownership. These shifts are reshaping the luxury housing landscape, particularly in Southern cities like Houston, Dallas, Charleston, and Atlanta.
As a result, developers and investors would be wise to respond accordingly. Dragos recommends focusing on premium rental communities offering flexible lease terms, luxury amenities, and smart home technology.
“Keeping an eye on economic shifts, migration trends, and evolving consumer preferences is key to succeeding in today’s high-end rental market,” she said.
*An earlier version of this article appeared on ApartmentBuildings.com.*
