In recent years, there has been a significant surge in the number of affluent individuals in the New York metropolitan area opting to rent properties, as revealed by the latest report released by the real estate website RentCafe. The report indicates a substantial increase in the number of households with annual incomes exceeding $1 million who choose to rent in the New York metropolitan area, rising from 2,204 in 2019 to 5,661 in 2023, marking a staggering 157% surge. This surge far surpasses other cities across the United States, with San Francisco ranking second at only 1,411 million-dollar annual income renters.
The analysis by RentCafe points out that the reasons behind these wealthy individuals opting to rent include high flexibility in lease agreements, the prevalence of high-end amenities in rental properties, the rise of remote work allowing for more location flexibility, and the desire to avoid the cumbersome management and responsibilities that come with property ownership.
Furthermore, the strong performance of the stock market and the booming tech industry have contributed to the elevation of more individuals into the million-dollar income bracket. For these high-income earners, the persistently high real estate prices in New York, coupled with limited available properties for purchase, have made renting a more cost-effective choice, further driving demand in the high-end residential rental market.
Currently, there is generally a greater supply of rental properties on the market compared to homes for sale, which often command historically high prices. For instance, a four-bedroom, three-bathroom apartment on the top floor of the Skyline Tower in Long Island City in Queens commands a monthly rent of $11,500, making it one of the highest-priced rental listings in the area.
Looking at the nationwide trend, the number of million-dollar income renters in the United States grew from 4,512 in 2019 to 13,692 in 2023, marking a remarkable 204% increase, surpassing the 169% growth of million-dollar income homebuyers during the same period (increasing from 52,966 to 143,320 households).
Across all age groups, the “Millennial Generation” (aged 29-44) accounts for 46% of million-dollar income renters in the United States, making them the largest group; followed by Generation X (aged 45-60), Baby Boomers (aged 61-79), the Silent Generation (aged 80-97), and Generation Z (aged 13-28).
Between 2019 and 2023, the proportion of high-income Millennial renters increased by 60%, reflecting this generation’s preference for lifestyle flexibility and convenience. In contrast, Generation X notably leans towards homeownership, surpassing Baby Boomers in the percentage of property owners among million-dollar income individuals.
Despite the notable rise in renting trends, there has been a simultaneous increase in millionaires in the New York metropolitan area who own homes. According to the report, the number of millionaire households owning their residences in the region nearly doubled over four years, reaching 26,767 households by 2023.
For more information on the report, please visit: [RentCafe Millionaire Renters Trends](https://www.rentcafe.com/blog/rental-market/market-snapshots/millionaire-renters-trends/)