Millionaires Are Choosing to Rent. Here is Why That is Interesting.

Between 2019 and 2023, the number of millionaire renters in the United States more than tripled, from about 4,500 households to nearly 13,700. These are people earning over $1 million a year who are choosing to rent — not because they have to but because they have decided it makes more sense.

The New York Times wrote about this trend in September 2025 and I have been thinking about it since, as it complicates the simple story we tell about renting being something you do until you can afford to buy.

Inspired by: The New York Times, September 4, 2025

Why Wealthy People Are Renting

A few reasons come up consistently in the data:

Liquidity. A $3 million home is $3 million sitting in an illiquid asset. If the stock market is returning 8% annually, a high-net-worth individual might reasonably prefer to keep that capital invested and rent a comparable place instead. The math is not always obvious but for someone with a large portfolio and a long time horizon, it can favor renting.

Flexibility. Executives, entrepreneurs and high earners often move, for work, for opportunity or for lifestyle. Owning a home anchors you. Renting does not. As remote work made location more fluid, a lot of wealthy people decided that freedom was worth paying a premium for.

Avoiding the hassle. Property taxes, homeowners insurance (especially in California and Florida, where premiums have surged), maintenance and HOA headaches are not just financial costs; they are time and stress costs. Some people would rather write a check for rent and have none of that.

The lock-in math. When rates jumped from 3% to 7%, even a $2 million buyer was looking at a dramatically higher monthly payment. Some wealthy buyers decided to wait on the sidelines rather than lock in at today's rates.

What This Tells Us About Renting

I think the millionaire renter trend is a useful reminder that the rent vs. buy decision is genuinely situational. It is not that renting is always better or owning is always better. It depends on your rate, your timeline, your liquidity needs, your life situation and where you want to be in ten years.

For most of my clients, people building toward financial stability who plan to stay in one place and want to build equity over time, buying still makes sense when the numbers work. Homeowners below the millionaire tier are still 43 times wealthier on average than renters, largely because of home equity. That gap is real.

It is worth releasing the idea that renting is always the consolation prize. Sometimes it is a deliberate choice made by very smart people with a lot of options.

As always, happy to help you think through which side of that equation makes more sense for you right now.

Rates shown are for illustrative purposes only and are not a commitment to lend. Actual rates depend on credit profile, loan type, property type and market conditions. Not all borrowers will qualify.