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ew data from Redfin reveals that nearly three-quarters of the most populous US metro areas have seen an increase in wealthy renters, with Raleigh, NC, and Orlando, FL, leading the trend. According to Juan Castro, a Redfin Premier real estate agent in Orlando, "For many, renting is about flexibility. The US economy and job market are evolving, and people want the freedom to move as opportunities arise."

    In Raleigh, the percentage of affluent renters has climbed from 4.8% in 2019 to 7.7%, while in Orlando it's risen from 8.5% to 10.8%. Other metros with significant increases include Buffalo, NY (6.6%), Tampa, FL (9.4%), and San Diego (9.3%). Redfin Senior Economist Elijah de la Campa notes that many affluent Americans are opting to rent rather than buy because home prices have surged far more than rental costs in recent years.

    Renting is increasingly appealing to the wealthy due to rising home prices and mortgage rates near 7%. In Tampa, for example, the median home sale price jumped 67.4% from 2019, while income required to afford a typical home rose 63.1%, outpacing rent costs. Nationwide, the income needed to afford the median-priced home has surged 36.9% since 2019, compared to a 28.1% rise in rent.

    Beyond financial considerations, some affluent Americans are choosing to rent for lifestyle flexibility. Castro notes that friends have sold their homes to rent and quickly relocate if a dream job appears elsewhere. Florida's housing market saw prices soar during the pandemic, but over the past year, prices in some areas have begun to decline due to natural disasters, rising HOA fees, and increased insurance costs.

    Wealthy renters are concentrated in costly housing markets like San Jose, CA (11%), Orlando, FL (10.8%), San Francisco, CA (10.4%), New York, NY (10.3%), and Seattle, WA (9.9%). Despite their high earnings, these renters find renting significantly more affordable than homeownership. In San Jose, an affluent renter spends only 10.5% of their income on rent, compared to 21% on a mortgage.

    Tech hubs like San Francisco and Seattle have driven up housing costs due to their concentration of wealth. Between 2000 and 2019, Seattle saw the share of affluent renters rise from 6.7% to 9.5%, while San Francisco and San Jose followed closely behind. Redfin's analysis found that for every 10% drop in home buying affordability, the share of wealthy renters in a metro increased by 0.5 percentage points.

    Some metros have seen a decrease in wealthy renters, including Birmingham, AL (down from 7.6%), New Orleans, LA (down from 7.5%), San Francisco, CA (down from 11.9%), Pittsburgh, PA (down from 7.2%), and Sacramento, CA (down from 7%). These areas have home prices below the national average, potentially driving more affluent residents toward homeownership.