The New York metro area experienced a drastic surge in millionaires renting property there from 2019 to 2023, according to a report by the real estate listing site Rent Cafe.
Over this period of time, the number of households in the area rented by those earning at least $1 million a year in income more than doubled, rising 157%, from 2,204 in 2019 to 5,661 in 2023. This number blows all the other cities in the United States that were included in the study, with the closest one being San Francisco, California, at just 1,411 millionaire renter households.
Some of the main contributing factors to more millionaires choosing to rent in the New York metro area are more flexible leases, an abundance of luxury amenities, more location flexibility thanks to a rise in people working remotely and fewer hassles and responsibilities than with owning a home. Additionally, robust gains in the stock market and the expansion of the tech sector have contributed to more people becoming millionaires.
In metro areas like New York, renting could end up being a more cost-effective option for millionaires. There is a larger abundance of apartments for rent there than homes available to buy, with the latter often having sky-high costs.
Rentership rates have recently entered historical highs, making them all the more attractive. One example of this trend is a 4-bedroom, 3-bath penthouse in Long Island City’s Skyline Tower, which now rents for $11,500 per month—the most expensive listing in Queens.
Across the United States as a whole, millionaire renter households spiked 204%, from 4,512 in 2019 to 13,692 in 2023. This percentage change outpaced the 169% growth in homes owned by millionaires, from 52,966 in 2019 to 143,320 in 2023.
Millennials account for the highest percentage of millionaire renters in the United States among all generations, at 46%. Those from Gen X are second, at 34%, followed by Baby Boomers at 17%. The Silent Generation takes up another 2% and Gen Z 1%.
When it comes to homeowners, Gen X leads the way at 43%, followed by Baby Boomers at 32%. Millennials make up just 16% of millionaire homeowners. Bringing up the rear is the Silent Generation, at 5%.
From 2019 to 2023, high-earning Millennials had a 60% boost in rentership. Such a trend reflects this generation’s preference for flexibility and convenience.
Over the same period of time, more members of Gen X turned toward owning homes rather than renting, overtaking Baby Boomers for the highest percentage of millionaire homeowners.
While there has been a notable increase in millionaires looking to rent a home rather than own one in the New York metro area, there was still a drastic climb in those owning homes in the area. Households in the New York metro area with millionaire homeowners nearly doubled from 2019 to 2023, with the number now sitting at 26,767.
