The housing market has gotten so bleak that even millionaires are renting right now

• Millionaire renters in the U.S. have tripled from 4,500 in 2019 to nearly 13,700 in 2023, showing a surprising shift among the wealthy toward renting. While New York and San Francisco remain popular, Texas and Florida are emerging as new hotspots for affluent renters seeking flexibility and luxury without homeownership hassles. Rising costs and market challenges are making buying less appealing—even for millionaires.

An unexpected wealth class just joined the club of “forever renters”—and it’s not who you’d expect. 

Millionaires who rent in the United States reached 13,692 in 2023, triple what it was in 2019, while the number of high-net-worth homeowners lagged behind, according to a recent report from RentCafe. 

Between those four years, the number of renter households with an income of $1 million or more grew from 4,500 to 13,700. An additional 9,200 millionaire renters entered the market. 

Now, 1 in 11 millionaires are renters, compared to 1 in 13 in 2019. While both millionaire renters and homeowners have surged over the last four years, renters are rising faster. The number of millionaire renters surged by 204%, outpacing the 169% growth in millionaire homeowners. 

Where affluent Americans are renting right now

While New York and San Francisco remain hotspots for ultra-wealthy tenants, the report highlights that Southern metropolitan areas are becoming increasingly popular. Texas and Florida are among the new retirement-friendly locations.

“In fact, in Houston and Dallas the number of millionaire renters has increased the most between 2019 and 2023,” the report added. “This surge in renter millionaires can be traced to multiple factors, including robust stock market gains over the last five years, the expansion of the tech sector, the rise of remote work enabling location flexibility, and a growing preference for turnkey living solutions over the responsibilities of homeownership.”

While soaring housing costs are largely an uphill battle for first-time buyers, high interest rates and limited supply could make buying less appealing for the wealthy, too. In August, the typical home spent 60 days on the market, 7 days longer than the same time last year, according to a report from realtor.com.

Aside from just the convenience of building supers and luxury pools, renting also could be a financial strategy for high-income earners. Instead of dealing with taxes, upkeep and slow appreciation, millionaires could keep investing their money in the stock market. With the S&P 500 gaining 26% in 2023 and another 24% in 2024, the upside in the markets can easily outpace real estate growth. 

Millionaire renters are on the rise—but real estate star Josh Flagg says ownership still reigns supreme

Despite there being more millionaire renters flocking to Southern metro areas in the pandemic years, most millionaires still choose to own their homes. During the same four year period, millionaire homeowners climbed from 52,966 to 142,320 households. Although renter growth among millionaires signals a new trend nationally, some real estate experts say they haven’t personally observed a stronger interest in renting within their markets.

“I’ve yet to see any stronger interest in renting amongst wealthy individuals. In fact, I’ve seen increased ownership this year,” Josh Flagg, real estate agent and Million Dollar Listing Los Angeles star, tells Fortune. 

“I can only speak to the markets in Florida, New York, and California, but ownership demand remains very strong in those regions.”

Generations also play a role. An analysis of IPUMS data showed today’s typical millionaire renter is a millennial—and the share of wealthy millennials has jumped 60% since 2019. But as they settle down, millionaire homeownership could rebound.

This story was originally featured on Fortune.com